4. Holiday pay examples

Below are examples of how holiday works for different types of employees.

A salaried employee with a Fixed work pattern and fixed salary books a 10 day holiday. In this case, no additional holiday pay will be added by the holiday Pay Item. The holiday balance will decrease to 18 days.

A zero-hour contract worker (No work pattern) books a holiday. During the holiday they will normally not receive any pay from other Pay Items. The Holiday Pay Item will look back over 104 weeks of history and find 52 paid weeks of pay. All values will then used to determine an average weekly pay figure. The conversion of 1 week to days depends upon the number of employees working days and the days the holiday was booked for. An employee who works 5 days per week (Mon-Fri) and who takes 2 weekday holidays will, therefore, earn holiday of 0.4 x weekly pay.

A sales worker who earns salary and commission takes a 2-week holiday and is unable to earn full commission during their holiday. Although their salary will be paid normally during the holiday, the holiday pay item will contribute an average commission value to reflect what they would have earned if they had been working.

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