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ISSUE 3
Other payments, such as overtime payments, which have been regularly paid to a worker in the 52 weeks preceding the calculation date The following extract has been taken from Department for Business & Trade guidance: Holiday pay and entitlement reforms from 1 January 2024 It doesn’t really give us a definitive list of earnings that should be included in the normal pay calculation but I guess a definitive list would be difficult to produce as we all use slightly different terminology for the payments we process. Therefore, the task passes back to payroll; trying to identify the payments which are, in essence, commission, performance-related, overtime etc. If you can identify these elements, communicate! Discuss the findings with HR and Finance, the additional
costs will need to be budgeted for. Decide and agree upon a process moving forward that can incorporate a calculation that includes these elements. Consider the payroll software/provider, can they help? Remember to include the workers too, their agreement is equally as important as that of HR and Finance. Why are we doing this? Because the guidance still states: It is not intended to be relied upon in any specific context or as a substitute for seeking advice, legal or otherwise, on a specific circumstance, as each case may be different. If employers introduce changes to terms and conditions, they must seek to reach an agreement with their workers or their representatives Other useful contacts Holiday entitlement calculator - ACAS Helpline - 0300 123 11 00
Author: Jo Marshall
Jo has over 20 years of payroll experience, working in a variety of different roles. Jo has always been involved in payroll, this includes the 10 years whilst working for an HR and Payroll software provider. During those 10 years, roles included consultant, project manager, payroll quality manager and finally, going on to establish and implement a payroll-managed service using the company’s standard HR and Payroll product.
Going freelance in 2016, opened further opportunities, working with the CIPP, as a trainer, consultant and working on the advisory desk. Now a regular presenter for UK Training, MBL Seminars and GPA, covering topics such as essential payroll, P11d, benefits and expenses, payrolling of benefits, automatic enrolment and pensions, holiday pay and leave entitlement and off-payroll working.
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