Settling Holiday Pay Disputes
Accrued liability for unpaid holiday pay due to historical miscalculations may leave businesses worth much less than their owners anticipated. Without taking action, future claims for similar unpaid sums may continue to accrue causing a holiday headache to turn into a nightmare. Some employers can no longer base their holiday pay calculations on basic pay alone.
Our specialist employment law team are here to help you avoid and manage holiday miss payments. Talk to us today by calling 0333 323 5292 or simply fill out the enquiry form on this page and we will get back to you shortly.
About Holiday Pay
As an employer, it is your responsibility to ensure that your employees receive the holiday payment to which they are entitled. However, due to the way this is calculated, it can often mean that employers are incorrectly paying their employees, resulting in expensive and damaging claims.
Full-time employees are entitled to 28 days of paid holiday per year. These 28 days can include public holidays and bank holidays dependant upon the employee’s contract.
Businesses that fail to take steps to protect their position face potentially crippling claims, with Katja Hall (CBI Deputy Director-General) recently commentating that:
“Backdated claims on holiday pay could lead to bills of millions of pounds for each business, and ultimately threaten their very existence.“
As well as holiday payments, employers can also face problems when it comes to other payments, including:
- Productivity, attendance and performance bonuses
- Shift allowances
- Nightshift payments
- Acting up supplements
- Standby and emergency call out payments
Frequently Asked Questions
Do employees have a right to take off a Bank Holiday?
Contrary to popular belief, workers do not have an automatic right to be off on a bank holiday, with or without pay. This is dependant upon the agreement within your employee’s contract. Legally, as an employer you can:
- Ask employees to work a bank holiday
- Allow employees to take a bank holiday off with or without pay
- Allow bank holidays to count towards statutory holiday entitlement
Who is liable for incorrect holiday payments?
Employers who have incorrectly calculated holiday pay for certain categories or employees by reference to basic pay only are now faced with the possibility of back pay claims stretching back over a number of years.
What should employers do if they underpay workers?
Employers who make commission, overtime and other similar types of payments but who do not properly include those payments within their holiday pay calculations need to consider whether or not their systems for calculating holiday pay need to be changed now.
Additionally, depending on the potential value of claims, some employers will also wish to make financial provision for this potential liability in their annual accounts.
How Lupton Fawcett Can Help
A holiday pay claim is a complex issue that could potentially be very expensive for you and your business. Our expert team is here to offer you help and advice. We also offer holiday pay audits and reviews to give you peace of mind and security for the future.
Contact Us For Help
To speak to an expert solicitor about a holiday pay contact Lupton Fawcett today by using the details below. Alternatively, visit our offices in Leeds, Sheffield or York to meet our team.