The Great Holiday Pay Rip-Off

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I’m talking ONLY about Pay-As-You-Earn Employees who
have no normal working hours.

CLICK HERE for the ACAS Holiday Handbook and turn to the bottom of Page 7.

"Workers with no normal working hours:
If a worker has no normal working hours then a week’s pay
(used to calculate Holiday Pay) is the average pay received
over the preceeding 12 weeks. Any week for which no pay
was due should be replaced by the last previous week for
which pay was due."

Some firms/Agencies may try to pay you the basic rate for a day’s Holiday Pay.
E.G. 8 hours @ £8 = £64 per day.

If you have been earning an average of £500 per week (before tax)
over the previous 12 weeks then your Holiday Pay should be
£100 not £64 per day.

A firm recently had to pay out thousands of back-pay to its Drivers.
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I’ve yet to find a firm which pays more than 40 hours at standard rate for a week’s holiday.
Seems like some drivers are being spoilt while others are being shafted.
Nothing changes :unamused:

We get 48 hours paid per weeks holiday plus an extra shift allowance payment to cover our loses. Sometimes the extra allowance is more than my normal :smiley:

It seems to be a little known fact that by law you must be paid average of the previous 12 or 14 weeks pay for holidays.
I think it came in around 2003.
I know, as I was an employer at the time, and we complied, a lot don’t .

average from last 12 weeks inc premiums :slight_smile:

as it should be!

zippo:
It seems to be a little known fact that by law you must be paid average of the previous 12 or 14 weeks pay for holidays.
I think it came in around 2003.
I know, as I was an employer at the time, and we complied, a lot don’t .

Can you substantiate this ‘fact’?

I’m sorry to sound cynical but I know of someone who’s working week is 45 hrs or 5x9 min but his holiday pay is 40hrs or 5x8 max.

If I could point him to the legislation or where to find it I’m sure he’d appreciate it.

Ta!

im not driving at the mo but the company i work for pays yr standard 45 hours which is around £380 before tax and also i get £125 per week that im on holiday is that correct ■■

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As far as I’m concerned, it is your Average Gross Earnings for
the last 12 weeks before you go on holiday that counts.
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chris_g:
im not driving at the mo but the company i work for pays yr standard 45 hours which is around £380 before tax and also i get £125 per week that im on holiday is that correct ■■

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If your average wage over the last 12 weeks has been less than
£ 505 then you’re on a winner.
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Dieseldoforme:
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Some firms/Agencies may try to pay you the basic rate for a day’s Holiday Pay.
E.G. 8 hours @ £8 = £64 per day.

If you have been earning an average of £500 per week (before tax)
over the previous 12 weeks then your Holiday Pay should be
£100 not £64 per day.

Err, no. Unless stated otherwise only basic pay is included in the calculation, not overtime.

zippo:
It seems to be a little known fact that by law you must be paid average of the previous 12 or 14 weeks pay for holidays.
I think it came in around 2003.
I know, as I was an employer at the time, and we complied, a lot don’t .

It is an average of the previous 12 weeks and only applies to those who don’t have regular hours.

Conor:

zippo:
It seems to be a little known fact that by law you must be paid average of the previous 12 or 14 weeks pay for holidays.
I think it came in around 2003.
I know, as I was an employer at the time, and we complied, a lot don’t .

It is an average of the previous 12 weeks and only applies to those who don’t have regular hours.

That would be most truck drivers then,surely.

Conor:
Err, no. Unless stated otherwise only basic pay is included in
the calculation, not overtime.

Employment Judge Traylor would not agree with you.

"If a worker has no normal working hours then a week’s pay
(used to calculate Holiday Pay) is the average pay received
over the preceeding 12 weeks."

Worst bit is when in the previous 12 weeks you get short weeks, pay is still average over 5 days even if you only work 1 day.

Dieseldoforme:

Conor:
Err, no. Unless stated otherwise only basic pay is included in
the calculation, not overtime.

Employment Judge Traylor would not agree with you.

"If a worker has no normal working hours then a week’s pay
(used to calculate Holiday Pay) is the average pay received
over the preceeding 12 weeks."

Got a link to the judgement?

mac12:
Worst bit is when in the previous 12 weeks you get short weeks,
pay is still average over 5 days even if you only work 1 day.

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I guess that’s the way the cookie crumbles - that’s what average means.

Better to book your hols after you have had a stonking 12 weeks wages !

However, if you didn’t earn anything at all in one of the 12
weeks, you can go back further and use a previous week’s wage.
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Conor:
Got a link to the judgement?

There is no link.

I have a hard copy of what they call The Judgment, not judgement.

  1. The claimant’s complaint under Working Time Regulations 1998 is well founded.

  2. The respondent is ordered to pay to the claimant the sum of £xxxx.■■
    (confidential) as compensation in relation to leave entitlement, this being
    the difference between the calculation of holiday pay based on the average
    gross pay over 12 previous weeks and the sum already received by the
    claimant, based on his basic pay for the same period.
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Retired Old ■■■■:
I’ve yet to find a firm which pays more than 40 hours at standard rate for a week’s holiday.
Seems like some drivers are being spoilt while others are being shafted.
Nothing changes :unamused:

I get paid my 50hrs for a weeks holiday. Only thing I don’t get when I’m on holiday is my weekly £15 PRP bonus.

I get 45 hours I’m stopped an hour a day although I only have 1 45min a day so I’m being shafted 2.5 hours pay each holiday week. Still I’m paid my breaks any way so I shouldn’t moan give and take I suppose.

You might be working flat out on the “averaged last 13 weeks” con, only to find when you’ve got your booked holidays coming up, you’ll find yourself getting 13 short weeks running into it - so the average drops right down.

Better to have the safe and fair system of a “holiday pot” where something like £1 is thrown in by the employer for each hour worked - ie it’s the same as getting that proverbial “pound an hour extra on umbrella” but whilst staying on PAYE.

If you work 50 hours a week x 13 weeks, you’ve got £650 in your pot for the week’s holiday you’ve built up over 3 months, based on the annualised assumption that you’ll be taking a total of 20 days stat leave per year in 4x5 day weeks.

Now, £650 for each of the four weeks taken based on an average 50 hour week the rest of the time isn’t bad is it?

If you only work 30 hours, then your pot for each holiday week is going to be £390 based on the same £1 an hour put in by the employer per hour worked.

The holiday pay thus remains above the actual average week worked!

Once money is put into the pot, it isn’t withered away again by short weeks when you get less than a full week’s worth. Money isn’t stolen from you in other words. :wink: