CIPP Payroll: need to know 2019-20

For workers on casual work with no normal hours, for example on a zero-hours contract, holiday pay will be based on the average pay received over the previous 12 weeks.

These should be weeks in which the worker was paid. If no pay was received in one of those 12 weeks (because no work was done), the last paid week before that should be used to calculate the holiday pay.”

Note that Acas’ holiday pay leaflet is now out of date and requires an update to reflect the Brazel v Harpur ruling.

CIPP news •

Holiday pay calculations for term-time workers – August 2019 • Calculating holiday pay for term-time workers – March 2018

Rulings •

Court of Appeal – Harpur Trust v Brazel - August 2019 • Employment Appeal Tribunal – Brazel v Harpur Trust – March 2018

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Government campaign launched to ensure workers receive the correct holiday pay 4 March 2020

The government has launched a new campaign to remind workers of their entitlement to paid holiday leave and to prompt employers to check that their staff are taking that leave.

Regardless of whether a person works part time, works shifts or works irregular hours, they have a legal entitlement to paid time off for every hour that they work. Research has highlighted the fact that workers are missing out on approximately £1.8 billion a year in unpaid holiday leave.

Business Minister, Paul Scully said:

“ We want Britain to be the best place in the world to work, and all workers, regardless of the hours they do, should receive the paid time off they are entitled to.

Entitlement to paid annual leave from day one in a job is just one of many measures the government has in place to ensure we can all balance work with our personal lives .”

Those most at risk of missing out on pay are those with atypical working patterns, such as agency workers and temporary staff, along with part time workers and those that do shift work.

The purpose of the campaign is to highlight the importance of both employers and employees being aware of the entitlements and ensuring that companies fully understand how holiday pay is calculated correctly to ensure that workers receive the right amount. There is advice on holiday pay on Gov.UK, which will assist employers when calculating what an employee is owed. The way holiday pay will be calculated is changing from April 2020, and the 12 week reference period is due to be increased to 52 weeks.

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BEIS relax rules to respond to COIVD-19 impact on taking annual leave 30 March 2020

The Chartered Institute of Payroll Professionals

Payroll: need to know

cipp.org.uk

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