COMPLIANCE
Have your say
Holiday pay and leave
Payroll professionals give details of their experiences when processing holiday pay and calculating holiday accrual. Have you encountered any of the below situations?
H ere at the CIPP, we want to what isn’t working so well. This is so we can start to try and help to resolve some of the issues that arise and iron out any problems. Undoubtedly, holiday pay and accrual understand what’s working well in the payroll profession, but also,
are areas we hear about pretty much consistently, and this is true throughout all of the CIPP’s departments, whether that be from an individual attending an event and speaking to our sales team or a payroll professional ringing into our Advisory helpline to seek guidance and attempt to make sense of complex legislation.
In recognition of this, we wanted to ask how you deal with holiday pay. So, we took to LinkedIn to get your thoughts, and here’s what we discovered…
Over to you…
Simon Parsons MSc FCIPPdip MBCS, director UK compliance strategies, SD Worx “The law lacks coverage of anything other than weekly pay frequencies and, equally, acceptance of what ‘pay’ is. “So, the requirement for holiday pay to be calculated in weeks only and inclusive of pay (not amounts paid) up to the prior Saturday, makes holiday pay calculations for most (if not all), impossible to achieve. The concept of adjusting later is a nonsense expectation. “So many state that the 12.07% calculation was fairer. Obviously, the courts have confirmed it’s not as it doesn’t cover either the requirements of the Working Time Regulations nor the Employment Rights Act. I suggest the biggest anomaly is that the majority of UK workers aren’t paid weekly, yet there’s no acceptance of simple principles regarding how to calculate for any other pay reference periods. “Is it time for the law and guidance to cover a more straightforward approach of reflecting actual pay prior to the leave (not the prior Saturday), and for more popular pay frequency methods which aren’t one week to be catered for? The other significant flaw is the exclusion of zero pay weeks, to provide certain protections. Is this realistic or required, or do we move holiday pay to be a true reflection of average earnings over the past 12 months or 52 weeks?”
| Professional in Payroll, Pensions and Reward | July - August 2023 | Issue 92 36
Made with FlippingBook - Online magazine maker