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Holiday pay state of flux – survey results are in…

A big thank you to everyone who took part in our holiday pay survey. The results are in and make for interesting reading! Calculating holiday pay

For a quick summary see our graph holiday pay results.  The good news is that only 45% of participants are worried about the way their organisation calculates holiday pay. Interesting news for employers is that 28% have already experienced employees raising questions about how their holiday pay is calculated, although this is certainly likely to increase in the near future.

Despite 45% having concerns about the way holiday pay is currently calculated, only 31% have started to consider what changes they could make to calculating holiday pay in their business.

 

 

Further detail was provided by many respondents which highlighted some of the challenges, including the initial hurdle of just trying to establish what methods of incentivising employees currently operate within the business and conducting an audit of the potential costs involved. Many of you are waiting for further guidance particularly in relation to commission from the Lock case earlier this year. Some were concerned about the ability of their current pay roll system to cope with adding overtime and commission into already complex calculations. Only 23% of respondents were considering scrapping overtime or commission in light of recent decisions, although some highlighted that some alternative, such as higher basic pay may have to be offered which would not be ideal for many industries.

Perhaps the biggest surprise was that a mammoth 82% of people did not agree that it was fair to include overtime in holiday pay calculations. But the view of commission was more lenient, with 73% considering that the inclusion of commission in holiday pay was unfair in their opinion.

The highest percentage of the whole survey was that 86% would prefer the UK Government to step in and change the Working Time Regulations in order to provide clarity and certainty on the position. However, this is not something which has even appeared on the Government’s agenda recently and is unlikely to feature as a priority in an election build up, so is not something that employers can rely upon by any means.

You may be aware that the Neal v Freightliner case has settled and is not therefore being heard in the EAT this week. However, the other cases Fulton v Bear (Scotland) and Hertel & Amec are being heard as we speak.  We are tweeting live from the EAT over the next 3 days as the hearing unfolds. For up to the minute news Follow us @dwf_employment

We will also report back in a blog afterwards. Watch this space….

Keep up to date with employment law news and developments.

 

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Legal news, views, trends and tools for HR Professionals. Stay ahead. Go further