The Legal Way To Get Paid When You Are On Holidays!
A matter that concerns many London flooring contractors is the way of calculating holiday pay. There are some basic rules that were changed after a recent court judgement:
- Guaranteed and non-guaranteed overtime have to be considered when the employee`s statutory holiday pay entitlements are calculated. However, there is no certain case law that gives voluntary overtime that should be taken into account. Another thing that should be estimated in the holiday pay calculation is the commission. Business travels should be factored too. Worker’s entitlement to holiday pay should also be considered in case of sickness. Employees must take their statutory paid annual leave allowances and can be “paid in lieu” only when the employment ends.
- A London flooring company explains how guaranteed and non-guaranteed overtime is formed. When the employer is obliged by the signed contract to provide and pay agreed overtime and include it in the calculation of holiday pay, the overtime is called guaranteed. From the other hand, the non-guaranteed when the employer has no obligations to offer overtime but still if they do the employee must work as he is obliged by the contract. Another type of overtime is the voluntary. This case is when the employer provides additional work but the employee can turn down the offer or accept it but there is no contractual obligation on either sides. London flooring contractors point out that this issue hasn`t been considered by the recent judgments and there is no lay to suggest the voluntary overtime has to be taken into account when the holiday pay is calculated.
- Another aspect is the commission – it is an important factor as many London flooring professionals earn their income estimated on it. This is the amount of money that an employee gets as a result of sales – depending on the situation this can make up their whole earnings or make up just some of them. Commission has to be factored in the holiday payment according to the European law – it covers four weeks of statutory annual leave. However, there is no requirement this to be done when the additional 1.6 weeks provided under the UK law.
- Business travels or work-related travels can be defined in different ways but usually they mean any travel made for work purposes which is not a part of their usual place of work. A flooring company in London says that time spent traveling to and from work might need to be considered when the holiday pay is calculated.
- What about the pay due to sick leave? The annual leave will continue to accrue no matter is an employee takes paid or unpaid leave due to sickness. London flooring experts explain that if an employee is not able to take the annual leave in the current year due to sickness, they are allowed to carry it until they are able to take it. Workers can specify the period or wish to be paid annual leave at their usual rate.
- When holiday pay is calculated for different working patterns, a London flooring company explains that an employee should still get holiday pay that is based on a week`s normal remuneration – that means that their weekly wage might include similar payments or allowances.
- When it comes to payments in lieu of holidays, 5.6 weeks of the annual leave they are allowed can`t be paid off. Depending on the terms of the contract, usually anything above the statutory allowance might be paid off in lieu.
All of the outstanding holiday pays which have been accrued must be paid when a worker’s employment is terminated.
Inspired by www.contractflooringjournal.co.uk