Back in 1998, the Working Time Regulations (WTR) brought the entitlement for 5.6 weeks holiday into law. Although simple and clear for full-time employees, nothing was articulated for other working patterns. Given this ambiguity, many quickly came to use the well-known “12.07% rule”. This was derived by assuming that a full-time worker would work 46.4 weeks and take 5.6 weeks holiday and by simple maths 5.6 ÷ 46.4 = 12.07%. This was often used as the basis … Read more

Uber drivers are workers not self employed, Supreme Court rules The Supreme Court decided that Uber drivers are workers, so what does that mean for your company? If you pay any zero hours workers, and they have worker or employee status, then you may think all is well. However, there are 3 key questions you need to ask following this decision. Are all your zero hour workers: Auto-enrolled (AE)? Above the National Minimum Wage (NMW)? Receiving Holiday … Read more

Whilst appearing deceptively simple, HMRC RTI Payroll IDs are actually quite complex! This article attempts to explain how they work and how to avoid any issues. Most employees only have a single job and if this were the case, RTI payroll IDs might have never existed. However: RTI payroll IDs are not merely text labels – instead, HMRC uses them to track each job or employment. The easiest way to think about payroll IDs is to think … Read more

Are you compliant with the new 52-week reference period? From April 2020, the law regarding Holiday Pay for workers who do not have fixed hours or pay changed. This must now be calculated using a 52-week reference period. Unpaid weeks must not be included. Previously, there were two methods used for holiday pay: Unfortunately, neither of these two methods comply with the new law. In fact, the notion of rolled-up holiday pay is no longer acceptable. All … Read more

Published on June 12, 2020 Peter Bowyer