Yes, holiday pay again! We are questioned over and over around guidance or possible legislation in respect of calculating correct holiday pay in the workplace but still we are all driven by court judgments that have occurred throughout the home countries.
In a positive step, ACAS have confirmed recently they will be assisting further with detailed in-depth guidance but in the meantime, have published some “core” items to assist company’s in the decision-making process and this can be found on their helpful website
Calculating holiday pay
As we know from “Lock vs. British Gas” commission should be included in holiday calculations were statutory holiday periods are being considered (WTR regulation 13).
Overtime continues to be the core of many company’s calculations and from various cases it is viewed that guaranteed and “normal“, non-guaranteed should be included but it’s difficult especially in the later to quantify what this represents in the workplace. In respect of voluntary overtime, it’s still not a “definitive” area however recent cases such as “Brettle vs Dudley Metropolitan Borough Council” suggests it should now in fact be included.
Other areas that ACAS have focused in on include work-related travel – which may now need to be factored in if intrinsically linked and that holiday pay should accrue during periods of sick leave. Further guidance is also made around paying holiday in lieu which in the case of employees should only be made on an employee leaving employment.
More detail including quantifying what type of overtime a worker works can be found here.
