Acas guidance on calculating holiday pay

Holiday pay

 

In advance of more in-depth guidance, Acas has made some minor changes to their holiday pay guidance web pages.

Calculating holiday pay

In addition to current legislation, a number of recent court judgments should be considered when calculating holiday pay. This means that the rules employers and workers follow to calculate holiday pay may need to be updated.

Key points:

  • Guaranteed and normal non-guaranteed overtime should be considered when calculating a worker’s statutory holiday pay entitlement but there is currently no definitive case law that suggests voluntary overtime needs to be taken into account.
  • Commission should be factored into statutory holiday pay calculations.
  • Work-related travel may need to be factored into statutory holiday pay calculations.
  • A worker’s entitlement to holiday pay will continue to accrue during sick leave.
  • There are different rules for calculating holiday pay depending on the working patterns involved.
  • Workers must take their statutory paid annual leave allowance and can only be ‘paid in lieu’ for this when their employment ends.”

For further information on calculating holiday pay please visit the Acas website

For advice on this subject, get in touch with our payroll team at hello@garbutt-elliott.co.uk or fill in our contact form below: