We’re all going on a summer holiday… but what holiday pay should you pay your workers?

Posted on Aug 22, 2017

The sun may well be shining, but are you doing the right thing by your employees when it comes to holiday pay?  And what about your workers – are they covered?

Recent research by Middlesex University has uncovered that 1 in 20 workers do not get statutory holiday pay. Whilst the research focused more so on the gig economy and zero-hour contracts, the failure to pay statutory holiday pay is a widespread problem, where some employees are not given payslips and therefore cannot even check that they have correct wages.

Whilst I’m sure that you are not in that group of employer, I thought it would be an ideal – and shamelessly topical – chance to give you a summary of the main headaches for you to work your way through when it comes to holiday pay exposure:

  • Do you have any one working for you who might qualify for holiday pay? You might think they are “self-employed”, but are they?  Could they be “workers” and therefore entitled to pay?
  • What is their entitlement? The statutory minimum entitlement is 5.6 weeks under the Working Time Regulations (or 28 days) which can include bank holidays. This can be pro-rated depending on when they started with you.
  • What holiday pay are they entitled to? Have you looked at the issues of overtime, commission and factored that in?
  • If you have somebody off sick or on maternity leave which means they cannot actually take their holiday during the holiday year, no matter what it says in your policy, you should be allowing them to roll it over into the next year.