Holiday Pay – Top 10 things you need to know

Following the Supreme Court’s ruling on holiday pay, here is a list of what you need to do: Stop using 12.07% of pay or hours (unlawful) Stop the practice of rolled-up holiday pay (unlawful) Stop using holiday entitlement based on hours/days worked Start recording weekly pay for each worker – and maintain up to 104 weeks of history alongside your current pay frequency (monthly, 2/4-Weekly etc.) Start calculating 1-weeks pay as the rolling average over the last … Read more

Holiday Pay – 12.07% RIP

The supreme court has dismissed the Harpur Trust vs Brazel appeal and so 12.07% cannot be used for holiday pay. All workers need to receive 5.6 weeks holiday pay (not pro-rated) and zero paid weeks need to be excluded from 1-week’s average pay. Payroll will need to maintain weekly pay records, even if using a non-weekly pay frequency e.g. monthly or 2-weekly. Software will need to retain a list of the last 104 weeks (maximum) on each … Read more