Employment Legislation Update - October 2016

Holiday – it’s no picnic

There is one employment law topic which keeps re-appearing as case law evolves and it is a topic which applies to all employers – holiday entitlement.

Since the introduction of the Working Time Regulations in 1998, employers have had to get to grips with and explain holiday entitlement and how it works.  Below are some of the main points.

How much holiday entitlement are workers entitled to?

Workers are entitled to 5.6 weeks in a complete year and this can include Bank Holidays.  For those who work a 5 day week, 5.6 weeks equates to 28 days which is equivalent to 4 weeks and 8 Bank Holidays.

For part-time staff, it can be easier to calculate holidays in terms of hours of work.  For example, someone who works 16 hours per week is entitled to 5.6 x 16 which is 89.6 hours. 

Are part-time staff entitled to Bank Holidays, even if they don’t work these days?

All staff, including part-timers, are entitled to a minimum of 5.6 weeks per year.  If they do not work on the days on which Bank Holidays fall, they are still entitled to 5.6 weeks per year.

Can an employer withhold holiday pay when someone has been dismissed for gross misconduct?

No.  An employee is entitled to be paid for outstanding holiday on termination of employment, irrespective of the reason for this.  If an employee has taken too much holiday entitlement at the date of termination, the excess can only be deducted from final pay if there is an agreement which permits this.

How is holiday entitlement affected by absence?

Holiday entitlement continues to accrue during periods of absence.

If an employee falls ill prior to or during the holidays, they can ask to take their holidays at a later date.

Can an employer include an element of holiday pay with normal pay so that when the worker is on leave the holiday is unpaid as they have already had the payment?

No.  Rolled up holiday pay is unlawful and workers should receive payment for holidays at the time of taking the leave.  Workers should not be deterred from taking their holiday and the prospect of not receiving pay whilst on leave could do just that.

A worker is entitled to their basic pay whilst on leave.

Holiday pay should be based on normal payments which are intrinsic to the job, including commission, bonus, overtime and stand-by payments.

If you would like further information or support for your business please contact Sheila Watson on 01429 857082.

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