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June Employment Bulletin – New holiday pay guidance

Are you au fait with holiday pay? The Department for Business, Energy and Industrial Strategy has published new holiday pay guidance. The guidance was issued after a survey revealed an ‘alarming lack of awareness’ about Read more...

Are you au fait with holiday pay? The Department for Business, Energy and Industrial Strategy has published new holiday pay guidance. The guidance was issued after a survey revealed an ‘alarming lack of awareness’ about holiday pay.

The survey showed that half of workers thought that those on zero hour contracts were not entitled to holiday pay. More than half thought they had to work three months before the right to holiday pay arose. The guidance aims to debunk these and other myths. The guidance is detailed and contains examples of how to calculate average pay in complicated working patterns. It also has an online calculator to work out holiday entitlement for workers with no fixed hours in a variety of working arrangements.

The issue of holiday pay has recently arisen in Northern Ireland, where it was found that police officers and civilian staff had been owed money from a backlog of holiday pay dating back 20 years. The Court of Appeal held that holiday pay should be based on pay including overtime and allowances instead of just basic pay. As a consequence, the Police Service of Northern Ireland and Police Authority could face a bill of £40m in compensation.

Read the guidance here.