Holiday Entitlement Continued…

Posted on: October 19th, 2018 by Clive Headon No Comments

In a recent blog we discussed holiday entitlement for casual and zero hour workers.  Here we discuss other areas of holiday pay:

Rolled-up holiday pay

Rolled-up pay is when an employer pays accrued holiday hours alongside basic hours. Should this be the case then the employer must breakdown these hours clearly on a payslip.  The general rule is that holiday pay should be paid for the time when annual leave is taken, and HMRC suggest (as a general guide) that if employers are including an amount for holiday pay alongside the hourly rate, then current contracts may need to be re-negotiated. 

For further advice on ‘rolled-up holiday pay’ please follow the link below

https://www.gov.uk/holiday-entitlement-rights/holiday-pay-the-basics

The Holiday Accrual System

Statutory holiday entitlement starts to build up (or accrue) from the first day you start employment.  Under the accrual system, leave is built up monthly in advance at the rate of one twelfth of the annual entitlement.

Carrying over holiday entitlement

This will be defined in your contract of employment.

If an employee gets 28 days leave, they can carry over up to a maximum of 8 days.

If an employee is unable to take all of their entitlement for reasons such as sick, maternity or parental leave, they can carry over some or all of their untaken leave into the next holiday year.

An employer must allow a worker to carry over a maximum of 20 of their 28 days holiday entitlement if that employee could not take annual leave due to them being off work sick.

For further advice on holiday entitlement please contact us at [email protected] or click on below link.

https://www.gov.uk/holiday-entitlement-rights/calculate-leave-entitlement

 

 

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