I am writing contracts for a small restaurant which employees mostly seasonal staff.
I am aware that if employment is terminated on either side then they are entitled to holiday payment for what they have accrued but is it legal to have terms in the contract to limit accrual,
e.g. can a contract say "you accrue holiday entitlement for each complete month of employment"? there for they wouldn't have worked a complete month so wouldn't be entitled to holiday pay.
I can't understand how small business survive if they pay everything that is advised on the internet.
Any help apreciated, I am not trying to rip employees off, just trying to stop them rip us off!
I'm afraid the answer is no - see Does an employer have to pay holiday pay to its casual workers? in the XpertHR FAQ section.
Actually you are both right.
You can stipulate how holiday accrual will be treated in the event of an employee leaving - but here is the important part, ONLY the contractual element of holiday entitlement that is above the statutory 28 days - you cant touch those, and they acrue on a daily basis and have to be calculated until the employee's last day.
But any contractual element above that say if you have 33 days - so the addtional 5 days, you can do what you like with, within reason and as long as it is VERY clear in the contract.
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