Holiday pay changes

Posted 20th March 2015

Written by Tiggy Clifford

What every employer needs to know

We put on a couple of “excellent and informative” presentations this week (their words, not ours!) and we thought it would be good to share some of our top tips:

1. Check which employees may be affected.  This will be any workers who get:

  • Overtime payments / premiums
  • Shift allowances / premiums
  • Allowances linked to job performance or an employee’s personal or professional status – for example, do you pay employees extra if they hold certain qualifications or status?
  • Bonuses for individual performance or productivity
  • Commission payments
  • Standby / call-out payments

2. Breathe a sigh of relief because you don’t need to worry about:

  • Benefits in kind
  • Bonuses not linked to an employee’s individual performance
  • Expenses / reimbursements for costs incurred
  • One-off bonuses / occasional payments

3. For those employees affected, introduce new systems to ensure they are paid holiday pay correctly

  • This will probably involve calculating holiday pay based on their earnings in the previous 12 weeks, but we can talk this through with you in more detail.

4. Decide whether it’s a good idea to simplify things by changing your working practices in relation to:

  • Overtime
  • Bonus / commission structures
  • Other payments and allowances

5. Make the necessary changes to your employment contracts and handbooks

  • Again, we can guide you through these changes in detail

The timing of these changes may be important so give us a call and we can talk through how it will apply to your business.

Contact Tiggy Clifford on 0800 038 5500 for an informal chat. We look forward to working with you.