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Tuesday, 01 December 2015 10:59

Holiday Pay Yet again

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As the Christmas season approaches staff want to take holidays - do you know how to calculate holiday pay?

Surprisingly enough there are 4 types of holiday

  1. Leave granted by the working time regulations driven by the EU working time directive Type A 20 days
  2. Extra leave granted by the Working Time regulations UK driven type B 8 days
  3. Extra discretionary leave granted by an employer type C
  4. Extra leave granted occasionally by an employer type D


All holiday pay other than type A is paid at straight time. For type A at present you must include

  • Daily rate
  • Overtime whether compulsory or voluntary
  • Commission
  • Bonus if nor paid on annualised basis

Normally to calculate holiday pay you need to review the previous 12 weeks’ activity however for some organisations when overtime is skewed it may be required to go back over the previous 12 months

It is always assumed that for any holiday leave the 1st 20 days are type A

Please note that under normal circumstances you cannot pay in lieu of holiday unless employee has submitted their notice. Staff accumulate holiday while on sick leave or on maternity , paternity or shared parental leave.

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