Acas have published on-line guidance on calculating statutory holiday pay highlighting that in addition to current legislation, a number of recent court judgments should be considered, meaning that the rules employers and workers follow to calculate holiday pay may need to be updated. Acas set out six key points:
1 – Guaranteed and normal non-guaranteed overtime should be considered when calculating a worker's holiday pay but there is no definitive case law that suggests voluntary overtime needs to be taken into account.
2 – Commission should be factored into holiday pay calculations.
3 – Work-related travel may need to be factored into holiday pay calculations.
4 – A worker's entitlement to holiday pay will continue to accrue during sick leave.
5 – There are different rules for calculating holiday pay depending on the working patterns involved.
6 – Workers must take their statutory paid annual leave; it can only be 'paid in lieu' when employment ends.
Further information is available from the links at the bottom of the website page, but Acas rightly point out that until further clarification is available, employers may wish to seek legal advice based on their individual circumstances.
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The aim is to provide summary information and comment on the subject areas covered. In particular, where employment tribunal and appellate court cases are reported, the information does not set out full details of all the facts, the legal arguments presented by the parties and the judgments made in every aspect of the case. Click on the links provided to access full details. If no link is provided contact us for further information. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, SM&B cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.
This provides summary information and comment on the subject areas covered. Where employment tribunal and appellate court cases are reported, the information does not set out all of the facts, the legal arguments presented and the judgments made in every aspect of the case. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, we cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.
