GLOBAL PAYROLL MAGAZINE
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The government did suggest merging the two separate leave entitlements into one pot of statutory annual leave, but the response was to keep the two separate. Remember, anything in addition to statutory holiday is contractual leave and should be detailed in the employment contract/ company policy. This also means we have two different payments to make for holiday. Or even three if your contractual terms state it! Basic pay and normal pay Basic Pay - the 1.6 weeks statutory leave and UK public holidays. Depending on what the contract states (company policy), if you can have the day off on a public holiday, Christmas Day, Boxing Day, New Year’s Day etc., you receive your salary. Basic pay. Normal Pay – the 4 weeks, these are the days we generally request to take off. We should be paid what we normally receive. If you are only ever paid a salary, that is what you receive. But if you are paid commission, over time things get more complicated… From 1st January 2024, the components which must be included in normal pay are: Payments, including commission payments, intrinsically linked to the performance of tasks which a worker is contractually obliged to carry out Payments relating to professional or personal status and relating to length of service, seniority or professional qualifications
Based over a set 52 weeks, including weeks not worked Calculate the average number of hours per week worked during the 52-week relevant period before the worker started the maternity or family-related leave or sickness Do not include weeks where the worker is on maternity, family-related leave or off sick for any amount of time Weeks not worked for any other reason should be included All workers are legally entitled to 5.6 weeks of statutory holiday leave per year Regulation 13 – 4 weeks (EU) Additional leave – 1.6 weeks (UK) The new percentage method is based on this; 5.6 ÷ 46.4 x 100 = 12.07%
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