Holiday pay
Holiday pay

The following Employment guidance note provides comprehensive and up to date legal information covering:

  • Holiday pay
  • Statutory holiday pay: the basic right
  • 'Basic' and 'additional' statutory holiday: different rules apply
  • How European law affects the calculation of statutory holiday pay
  • Calculating statutory holiday pay: general
  • Calculating statutory holiday pay: normal working hours
  • Calculating statutory holiday pay: overtime
  • Calculating statutory holiday pay: commission and bonuses
  • Calculating statutory holiday pay: no normal working hours
  • Guidance on statutory holiday pay following the Lock and Bear Scotland cases
  • Prohibition of payments in lieu of statutory holiday during employment
  • Whether holiday must be taken to create a statutory holiday pay entitlement
  • Entitlement to statutory holiday during period of PHI benefits
  • Entitlement to statutory holiday pay on termination of employment
  • Rolled-up holiday pay: not permissible for statutory holiday pay
  • Claims and remedies relating to statutory holiday pay
  • Claims for historical underpayments of statutory holiday pay
  • Contractual holiday pay
  • The interrelationship between contractual and statutory holiday pay

UPDATE: With effect from 6 April 2020 the Employment Rights (Employment Particulars and Paid Annual Leave) (Amendment) Regulations 2018, SI 2018/1378, will change the reference period in regulation 16 of the Working Time Regulations 1998. SI 1998/1833 that applies for calculating an average week’s pay where a worker has variable remuneration, either because there are normal working hours but the remuneration varies with the amount of work done or the time the work is done, or because the worker does not have normal working hours. Where a worker has been employed by their employer for at least 52 weeks, the reference period will be increased from 12 weeks to 52 weeks. Where a worker has been employed by their employer for less than 52 weeks, the reference period will be the number of weeks for which the worker has been employed. For further information, see our report: LNB News 19/12/2018 122. In its ‘Good Work Plan’ published in December 2018 the government has also indicated that it intends to introduce state enforcement of workers’ holiday pay rights. For further information, see our report: 17 December 2018. The right to be paid for holidays is a statutory entitlement and may also be a contractual entitlement. The vast majority of this Practice Note concerns the UK statutory entitlement to holiday pay, and how the European law rights that form part of the underpinning for that
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