When Should I Allow a Worker to Carry Forward Annual Leave?

In terms of carrying forward holiday leave this can be broken down into three categories should, should not and may: When you should not carry holiday forward The minimum 4 weeks of WTD Leave should not be carried forward into the next holiday year. Employers should not replace this with a payment in lieu except…

How to Calculate Holiday Pay and Commission

The European Court of Justice has previously ruled that holiday pay under the Working Time Directive cannot be calculated based on basic salary alone where a worker’s remuneration includes commission determined with reference to sales achieved i.e. results rather than effort. Therefore this should be included when calculating holiday pay. The overarching principle is if…

How to Calculate Holiday Pay on Overtime

Case law decided through our judicial system and The European Court of Justice has determined how to calculate holiday pay and has rumbled on for a number of years. Three categories of overtime have been established: Guaranteed (compulsory) overtime, where even if the employee is not called on to work it; the employer is liable…

The Right to Bank Holidays and Time off For Religious Festivals

There is no statutory right to public or bank holidays so contract wording in this area can differ and employers may choose not to state the number of bank holidays, this is because there are times when bank/public holidays can fall early or late. As discussed previously, this will mainly affect companies who operate an…

April to April Holiday Years

  Many companies will set their holiday year from January 01 to December 31 however; there are companies who may wish to align their holiday year with the financial year, April 01 to March 31. Contracts should state that an employee’s entitlement to holiday starts from their first day with the company and is pro-rata…

What Happens When a Worker is Sick Whilst on Holiday?

When a worker on annual leave falls ill before or during a planned holiday, they must let their employer know as soon as is practical. The worker can choose to cancel their annual leave; take sick leave and re-schedule their previously planned annual leave. It is worth remembering that when a worker takes the option…

Does an Employee on Long Term Sick Continue to Accrue Holidays?

Employers are often surprised to learn that a worker on long term sickness absence continues to accrue statutory annual leave (i.e. the 5.6 weeks) and may choose to or not, to take sick leave during their period of absence. This is because; an employee on long term sick will continue to accrue holiday entitlement under…

Holiday Principles

The holiday season is nearly upon us and at this time of year we receive lots of holiday related queries. The position is confusing as it involves a combination of EU law; domestic UK law and case law so read on for the most commonly asked holiday questions.