The document explains how to calculate holiday entitlement for each of the scenarios listed above, where people start with or leave a company part way through the holiday year, and even where they do both in the space of a leave year.
There is separate guidance relating to calculating the pay that somebody should receive in relation to their holiday. Where somebody has fixed hours, the calculation is simple, and the employee is entitled to the equivalent of a week’s pay. Where somebody performs shift work, or has no fixed hours, the calculations get somewhat more complex, as per below:
The average rate should be taken over the last 12 weeks but where there is a week with no pay, this should be discarded, and the count should go back another week until a full 12 weeks that include pay are considered. Where a worker has been employed for less than 12 weeks, the advice given is to use the average pay rates for the full weeks they have worked.
CIPP comment
The CIPP welcomes the new holiday entitlement calculator and also the guidance surrounding the calculations behind it and the advice relating to the calculation of holiday pay. Due to the upcoming reforms to the calculation of holiday pay which will take effect in April 2020, obviously the calculations will change shortly but no further guidance on the topic has been published at the time of writing.
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Small & medium businesses fret about the expectations of staff at Christmas 12 December 2019
A new study by Intuit Quickbooks has revealed that many small and medium business owners spend higher amounts per head on employees at the Christmas party than required as they are worried about staff expectations at Christmas time. The research highlighted that the average employee would be satisfied with a company contribution of £40 per head to the Christmas party but that the average employer believes that the spend should be £52 a head, which is significantly higher. In fact, seven out of ten, or 70%, of small businesses were worried about expectations being too high but it seems that it is actually employers who are the ones placing high expectations on themselves. The reality is that the creation of a festive environment at work is of equal importance to staff as the event of the Christmas party itself and this can be achieved on a much smaller budget, for example by decorating the office or playing Christmas music. This should allay some of the fears of small and medium businesses in relation to cash flow at Christmas, as four out of five employees confirmed that their work surroundings were what made them feel more upbeat about their job.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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