News Article

Guidance to help Employers Calculate Holiday Pay

The Government has published the Good Work Plan in December 2018 to boost awareness of Holiday Pay Rights. 

The guidance covers: 

  • the twelve-week holiday pay reference period and what to do if you don’t have twelve weeks of pay data to use
  • the definition of a week for the purposes of the holiday pay reference period
  • the date a holiday pay reference period should start from
  • working out holiday pay for monthly paid workers
  • calculating holiday pay for workers with irregular hours or those on zero-hours contracts
  • the rules for workers on short contracts or temporary workers
  • dealing with different periods of leave which have included unpaid leave during the holiday pay reference period
  • differences between the right to paid holiday derived from EU legislation compared to UK legislation
  • differences in treatment between EU and UK legislation when calculating holiday pay
  • calculating holiday pay for those leaving a job
  • calculating holiday pay for term-time workers
  • when to pay a worker for holidays they have taken

There’s also a section summarising the case law regarding holiday pay. In addition to the guidance, there’s an online holiday calculator which you can use to calculate the holiday entitlement for a worker on an irregular hours, temporary or zero-hours contract. 

For any further advice or information please contact the team here at SFB Consulting. Our offices are based in Bishop’s Stortford and London but we offer our services and consultancy UK wide. 

T:01279 874 676 

E:info@sfb-consulting.com