On the 25th of February 2019, the Department for Business, Energy and Industrial Strategy (BEIS) published guidance explaining to employers how to calculate statutory holiday pay for workers without fixed hours or fixed rates of pay.
This guidance gives practical advice to employers and payroll departments and addresses some issues where the legislation is not specific, such as where the workers has not worked 12 weeks and there is not a 12-week reference period to use. It also clarifies that there is no requirement for the calculation of a week’s pay using the reference period where the worker is paid a regular monthly salary, with fixed hours and fixed pay.
This should be read alongside the other basic guidance that is on gov.uk.
The Global Payroll Association thinks that this is a useful piece of work from BEIS and clarity on this issue is long overdue. We also want to point out that there is legislation in place in the form of the Employment Rights (Employment Particulars and Paid Annual Leave) (Amendment) Regulations 2018 that extend the 12-week reference period to 52 weeks from April 2020.
On the 25th of February 2019, the Department for Business, Energy and Industrial Strategy (BEIS) published guidance explaining to employers how to calculate statutory holiday pay for workers without fixed hours or fixed rates of pay.
This guidance gives practical advice to employers and payroll departments and addresses some issues where the legislation is not specific, such as where the workers has not worked 12 weeks and there is not a 12-week reference period to use. It also clarifies that there is no requirement for the calculation of a week’s pay using the reference period where the worker is paid a regular monthly salary, with fixed hours and fixed pay.
This should be read alongside the other basic guidance that is on gov.uk.
The Global Payroll Association thinks that this is a useful piece of work from BEIS and clarity on this issue is long overdue. We also want to point out that there is legislation in place in the form of the Employment Rights (Employment Particulars and Paid Annual Leave) (Amendment) Regulations 2018 that extend the 12-week reference period to 52 weeks from April 2020.