BEIS plans additional guidance for calculating holiday pay

19 October 2018

Whilst the advice on at the moment provides guidance for individuals looking for a basic understanding of their entitlement, it is widely accepted that it is not sufficient for employers to understand their full legal obligations (or for individuals with a more technical question).  The intention is to produce more detailed technical guidance, aimed at employers, which can sit alongside the existing guidance.

Initial thinking is that the more detailed guidance should include:

  • What to do if you don’t have 12 weeks of pay data i.e. where someone is new in the job
  • How to make the calculations where pay is made each calendar month, rather than on a weekly basis
  • What date the reference period is calculated from
  • How to handle holiday pay for those with irregular hours/zero hours contracts
  • How to deal with those working on short contracts/temporary workers
  • How to deal with unpaid weeks/periods of absence
  • What pay elements need to be included for the EU derived entitlement versus the domestic entitlement
  • How outstanding holiday pay is calculated for those leaving a job
  • How to deal with term time workers

Where possible the plan is to include case studies, particularly for tricky but quite common situations like zero hours contracts or temporary workers.

Geographical extent

CIPP comment

If there are any other situations which you feel would benefit from more detailed guidance please email [email protected] with your suggestions.