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Holiday Pay

Summary of postings

Holiday Pay James 18 Feb 08

Details of postings

Holiday Pay James 18/02/2008 13:48

Hi


We run a small company that operates school transport and as such, our working days are school term times.


We pay our employees a daily rate over the 190 days of school but actually pay them 218 days (in 20 holiday days & 8 bank holidays).


Their daily rate is multiplied by 218 & then divided by 12 to give a monthly salary. The terms of the employee contracts state that holidays must be taken in school holiday time. If holidays are taken in term time, deductions are made at their daily rate.


Firstly, is this arrangement acceptable in employment law & secondly, could an employee that is deducted pay for taking holidays in term time, argue that their holiday entitlement is being reduced?


Thanks in advance for any replies.


James

 

 
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