08 February 2024

As this year is a leap year, the advisory team are getting some queries regarding what to do for employees that work on the leap year day. So, we thought we would try and answer the question and spread some awareness of this potentially troublesome situation.

Whether a worker must be paid for a leap year day largely comes down to the relevant document (usually a contract or employee handbook), so the answer is a rather deflating “it depends”.  

If employees are paid an annual salary or other mechanism which does not relate to specific days or hours (e.g. a monthly fee), then it is probable that the leap year day would not affect any calculation of gross pay for this period. This does not stop you from paying an additional payment, but it may not be required.

If by contrast, employees are paid for specific days or hours worked (for example, based on a shift rota) and paid an hourly or daily rate, then it is likely that the organisation would be contractually bound to pay employees for working on this day. 

Irrespective of any contractual terms, your organisation would need to ensure that employees are paid at least the relevant NMW/NLW rate of pay across all reference periods, encompassing the hours worked on the leap year day. 

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