New for 2021
CHANGES TO LEGISLATION
Awareness of changes to the calculation of holiday pay from 6 April 2020 6 April 2020 heralded huge changes to the fundamentals of how holiday pay is calculated for workers that have variable hours and / or pay. The pay reference period for use within the calculation was extended substantially from the previously observed 12 weeks up to a full 52 weeks.
In addition to this, employers were now only able to count back over a period of 104 weeks or less to achieve 52 weeks’ worth of pay data, whereas historically, they could count back as far as they needed to gather 12 weeks’ worth of data.
The CIPP wanted to assess how extensive knowledge of the change to the calculation of holiday pay is, and whether this has had significant impacts on businesses.
88% of respondents confirmed they were indeed aware of the changes, but this still leaves 12% who were not.
It is important that businesses familiarise themselves with the current rules surrounding the calculation of holiday pay to ensure that they are compliant, and therefore paying their workers correctly. It will also dramatically increase the likelihood of employees raising grievances or taking their employers to Tribunal.
C I PP POL I CY AND RESEARCH TEAM PAYSL I P STAT I ST ICS COMPARI SON 2008 -2021
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