The simple question of how to calculate a week’s holiday pay has raised a series of problems for HR over the years.
The holiday pay calculation can be straightforward if the worker has regular hours and pay. But there are numerous elements that complicate the question which have been the subject of case law – in particular what to include in normal pay. A further complication is that there is a difference between the four weeks’ holiday entitlement originating from EU law and the additional 1.6 weeks from UK law.
The government has proposed simplifying holiday entitlement by combining the two types of annual leave. It is not yet known when or if this change will come into force.
The top FAQ for October looks at how employers should calculate a week’s pay for the purposes of holiday pay.
Other holiday entitlement questions also feature in the top 10, looking at the basic statutory entitlement, and whether annual leave can be carried over to the next year.
Questions on settlement agreements, summary dismissal, and consultation to vary employment contracts also feature.
The top 10 HR questions in October 2023:
1. How should an employer compute a week’s pay in relation to an employee’s holiday pay entitlement?
2. What is HR’s role in supporting the organisation’s use of AI?
4. What is the minimum statutory provision for paid holiday?
5. What is a settlement agreement?
6. Do employers have the right to dismiss employees without notice?
8. Is there any right of appeal where an employer rejects an application for flexible working?
9. Can unused statutory annual holiday be carried forward to the next holiday year?
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10. What steps must an employer take to ensure that a job applicant has the right to work in the UK?
