Outsource Bookkeeping Service Providers

  • Accounting
  • Bookkeeping
  • US Taxation
  • Financial Planning
  • Accounting Software
  • Small Business Finance
You are here: Home / Bookkeeping / Holiday Pay for Employed and Self Employed

Holiday Pay for Employed and Self Employed

December 4, 2017 by cbn Leave a Comment

An EU court recently awarded a man 13 years of backdated holiday pay.  The EU court supported the man’s claim for 13 years worth of unpaid and untaken annual leave despite him having a “self-employed commission-only” contract.  His employers had refused to pay him holiday pay on the basis that he was “self-employed” and therefore any holiday he took was unpaid.

This decision is significant and may encourage employers to rethink how they categorise staff as the financial incentives for using only self-employed workers will be reduced if they have to pay holiday pay and perhaps other benefits such as Statutory Sick Pay to them as they do to employed staff.  

Holiday PayThe rules around holiday pay can be a little complex.  For example an employer cannot pay an employee for untaken holiday.  Every employee is entitled to and must take 5.6 weeks each year (pro rata for part-time employees).  If they do not take this they cannot be paid for it in lieu.  The only exception to this is if an employee leaves part way through the holiday year they are entitled to be paid for any holiday that is owing to them based on the proportion of the holiday year they have been employed.

Did you know that employees are not entitled to paid public holidays?

Anyone who is on sick leave or maternity or paternity leave continues to accrue holiday and they are entitled to take this or be paid for it when they return to work.  So if an employee is off sick for a year they can have a further 5.6 weeks off when they return to work.  The same applies to a woman returning to work from maternity leave.

When an employee goes on holiday they must not be disadvantaged in their pay.  Their pay during the period they are on holiday must reflect their normal pay including any regular commission or overtime payments.  If commission and overtime is not regular it is not included in the holiday pay calculation.  An employee who has a contract which states there is guaranteed overtime must be paid this regularly even if it is not worked and therefore it would be included in the holiday pay calculation.  If an employee does do overtime regularly even if it is not part of their contract than this would be taken into account for their holiday pay calculation.

For more information on holiday entitlement and calculating holiday pay visit the ACAS website.

Share on FacebookShare on TwitterShare on Google+Share on LinkedinShare on Pinterest

Filed Under: Bookkeeping

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Archives

  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015

Recent Posts

  • Former ambassador warns expiration of key nuclear treaty with Russia would make the U.S. ‘worse off’
  • FINRA scrutinizes firms that accepted PPP loans for possible rule violations
  • Weekend Reading for Financial Planners (Jan 23-24)
  • Editor’s Column: FSCS levy reform can’t come too soon
  • Business Advisor & Accounting Manager – Charlotte Agenda

Recent Comments

    Categories

    • Accounting
    • Accounting Software
    • Bookkeeping
    • Financial Planning
    • Small Business Finance
    • Uncategorized
    • US Taxation

    Categories

    • Accounting (898)
    • Accounting Software (799)
    • Bookkeeping (1,023)
    • Financial Planning (1,331)
    • Small Business Finance (1)
    • Uncategorized (3,112)
    • US Taxation (329)

    Subscribe Our Newsletter

     Subscribing I accept the privacy rules of this site

    Copyright © 2021 · News Pro Theme on Genesis Framework · WordPress · Log in