The tricky issue of holiday pay!!!

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Holiday and holiday pay is a very emotive issue for employees and employers alike. For employees it’s a well earned break from their hard work for employers, it’s a cost and an operational issue. There have been many recent changes in the law, which have changed the holiday pay landscape – so here are the things that as an employer you need to know.

Holiday entitlement is rooted in the Working Time Directive and the subsequent Regulations, which gives employees/workers 5.6 paid weeks holiday per year (which includes Statutory Bank Holidays) based on full time hours, for part time workers this is pro rata’d. Paid holiday applies to both employees and workers.

However, there is a difference between the two, which says the first 20 days holiday must be paid with all the additions but the rest doesn’t have to. It then becomes even more complicated when you try to work out what the employee is due by way pay. What is their regular pay? Is it calculated to include overtime – guaranteed or non-guaranteed? What about commission? What happens if the employee is on long term sick that crosses over holiday years? These are not easy questions!

Overtime

A few years ago a decision in the Employment Appeal Tribunal changed things and led to back pay for incorrectly calculated holiday pay only being claimed for up to 2 years (it was 6 years).  The case also said that as well as guaranteed overtime, non-guaranteed overtime pay should be included in the holiday pay calculation where it is part of “normal pay” but that a gap of more than 3 months breaks a series of holiday pay underpayments. What is non-guaranteed overtime is still undefined but in essence this is where the Employer is not obliged to offer overtime, but if they do, the employee/worker is obliged to do it. There is then a further complication because the Working Time Directive, which gave all UK employees and workers the right to paid holiday, only gives the right for 20 days paid holiday. The Regulations that followed increased paid holiday to 5.6 weeks. However….  we have a gap between the two –the right to overtime, guaranteed and non-guaranteed applies to the first 20 days holiday not the full 5.6 weeks !


Commission

Then came a more recent case, which established that regular commission payments and allowances, which are “intrinsically linked” to performing the role (such as flying time for pilots), should be included when calculating holiday pay. So, holiday pay should include allowances and commission. Again, this decision applies to the first 20 days holiday under the Working Time Directive not the full 5.6 weeks under the later Regulations. This could change however so watch this space.

Travel Time

The earlier case also decided that travel time, that is not part of the workers usual commute to work should also be considered when calculating holiday pay, but again only applies to the first 20 days not the full 5.6 weeks. So what does that mean. If Fred lives in Bicester but works in Oxford – his normal commute to and from work is not covered. However, if he is then working at a client’s everyday for 12 weeks in London and is paid by the hour, which includes travel time to and from clients, this extra time will need to be included if in week 13 he has some holiday. For example, it may add an extra 11/2 hours pay a day to the calculation.

 

Rolled up holiday pay.

This is deemed unlawful. The premise is that holiday is a health and safety provision so the emphasis is on employees/workers having a break not on them getting paid holiday pay per se.

 

Long term sickness

If an employee/worker is on long term sick then their holiday continues to accrue until they return to work or choose to take it. This then carries over year on year (subject to the 2 year rule above to claim unpaid accrued holiday – although it may also possibly be claimed as a disability discrimination reasonable adjustment but that’s a whole other story!).

 


So how is holiday pay to be calculated?

  • Statutory holiday pay is based on a week’s pay. If there is no set weeks’ pay then:
  • The calculation for annual leave is the average pay earned over a 12-week reference period. This applies to non-regular working patterns and shift patterns. This is over 12 paid weeks so if the person only works two weeks a month you go back for 12 paid weeks, in effect over 24 weeks in this example. If the person has only worked less than 12 weeks, for example 4 weeks, then its calculated based on those 4 weeks. This includes “allowances, overtime, travel time and commission now too!

Many contracts may refer to the employee/worker just getting basic pay for any holiday taken. This can only apply to any holiday over the first 20 days but that may well change. So…. If you give your employees/workers 5.6 weeks pay plus bank holidays you must pay the first 20 days as holiday with overtime (guaranteed and non guaranteed and commission and any travel time etc.) then the rest after the first 20 days can then be based on their contractual terms. However beware  – contract terms can be changed by custom and practice, so if you have always calculated it all on the higher basis you can’t just change it now!

If you have any questions on this or any other areas of HR or employment law please do not hesitate to contact our Natalie Roach on 01869 277692 or Natalie@oakemploymentsolicitors.co.uk

 

 

It’s time to get sharing again !

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As young children we are always encouraged to share our things but now us grown ups can be sharers too! Matt Dredger has developed an innovative way to connect people and get them sharing.

Borroclub is an online platform that allows the public to load up items they are willing to let others to borrow.  They can earn money from this and in turn borrowers can save money.  Matt came up with the idea for Borroclub as he was trying to clear out his garage one day, but couldn’t move for the ladders, tools, roof box and other costly items that were blocking his path.  When he thought about how many times he had actually used each thing he could count it up on just the one hand.

“I was reluctant to get rid of my things as they had cost so much in the first place and might be needed again in the future but I also thought it was quite wasteful.  I was sure that I wasn’t alone in doing this.

The beauty of sharing is that people can try out a product before deciding to invest in it themselves.  Camping is a classic example, where a lot of kit is needed but could be an expensive outlay if your first trip ends up as your last trip.  Or avoid costly purchases altogether by just borrowing an item for the short time that you need it, be it for a DIY job, holiday or even a party,” enthuses Matt.

People have recently borrowed a candy floss machine (great for kids parties or PTA events!) car trailers, and bicycle.

It’s a really simple process you can post your items at no cost and you simply state how much you want per day for your item and a reasonable security deposit value and that’s it.  When somebody wants to borrow the item the borrower pays your fees and small fee to Borroclub and Borroclub holds onto those funds until the item has been returned, only once the owner confirms safe return Borroclub then pays the owner of the item their money and refunds the security deposit.

And best of all it’s tax free due to a recent announcement in the latest budget.

So if you have something sitting around in your home, don’t delay get it on Borroclub and you could be earning some extra cash.  Alternatively if you want something and don’t have it, then take a look at www.borroclub.co.uk and borro it…don’t buy it!

It’s a great idea and importantly it helps our planet by reducing waste by reducing the need to manufacture a new item.

Contact:        Matt Dredger
Position:       Owner
Tel No:          0800 689 0695
Email:               matt@borroclub.co.uk
Facebook:       https://www.facebook.com/borroclub?ref=hl
Twitter:           @borroclub

Free Treatments for Deserving Dads at Amethyst Centre in Coventry

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It’s Fathers Day on Sunday! To celebrate, we at the Centre have decided to give one lucky Deserving Dad a free treatment with us here in Coventry. It’s completely free to enter too!

All you have to do is to tell us your Deserving Dad’s name, why he deserves a free treatment, and your contact details. Just email us at hello@amethystcentre.com or telephone us on 024 7644 0186 by 5pm on Friday.

The lucky Deserving Dad will be contacted on Saturday 18th June and the treatment must be taken at the Amethyst Centre by Friday 1st June.

Treatments available include: Reiki, Angelic Reiki, Atlantean Healing, Crystal Healing, Aromatherapy.

Please spread the word of this beautiful, kind and absolutely FREE offer from our staff to Dads in Coventry!

Oh and one last thing. If you enter the competition, we will send out some distance Reiki healing to everyone who enters, and their Dads too.

 

Robyn Rainbow is with Amethyst Centre in Coventry all week Monday to Friday !

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Robyn Rainbow is with us all week Monday to Friday and you can book her via our website booking page www.amethystcentre.com/bookings. Her therapies are Usui Reiki, Lemurian Reiki, Angelic Reiki and Atlantean Healing. We also welcome Michelle Heyes to the Centre this week. She is our Foot Health practitioner and provides many services that the NHS has now ceased to provide, so if you know someone who needs to find someone to help look after their feet, please pass our details on.

If you’d like a treatment with Chris this week, her best days are Monday, Tuesday and Thursday morning. Her treatments are Reiki, crystal healing, chakra balancing, aromatherapy and NYR Organic facials.

Let’s have a look at how the week shapes up:

Monday 13th Centre is open 10 – 4, with Robyn available all day if booked. Chris is also available 10 – 12 and 2 – 4.

Tuesday 14th Centre is open 10 – 4. Robyn and Chris are available all day if booked.

Wednesday 15th Centre is open 10 – 8. Robyn is available 10 – 4 by appointment. Michelle Heyes is with us between 12 and 3pm and you can book her using the bookings link www.amethystcentre.com/bookings Hari the physio is also with us between 12 and 8pm.

Thursday 16th Centre is open 10 – 7. Chris is available for treatments between 10 and 12, and Robyn is available 10 – 4 by appointment. Derrick the spiritual healer is here from 1 to 5. If you’d like to book for a specific therapy of his it will cost you £25 for half an hour. Helen Charles is with us from 2 – 7pm, and this week is different. She is offering the chance to become a Reflexology case study for only £10. At the time of writing she has slots available at 2, 3 and 5pm. Booking is via the bookings link.

Friday 17th the Centre is open from 9 to 4pm. Sofia the physio is with us from 9 – 4pm. Robyn is available between 10 and 4 by appointment.

Saturday 18th the Centre is open from 10 am to 8pm. Our “Social Media for Therapists” course is very popular and at the time of writing we only have 2 spaces left on it. This workshop will kickstart your social media presence across at least 4 platforms. Book using this link: http://www.amethystcentre.com/product/social-media-for-therapists/

Hari the physio is with us from 1pm till 8.30 pm.

Advance notice

Introduction to Colour Therapy on June 25th with Amanda Miller, £40. This workshop is an informal introduction to colour and its use in therapy, and if you are interested in learning the Colour Mirrors system, it is a really good introduction to that. We have just a couple of places left on it, and you can book here: http://www.amethystcentre.com/product/introduction-colour-mirrors/

Reiki Level 1 on July 2nd taught by Chris. This costs £100 and includes attunement, manual, certification, instruction in self-healing and working on other people, and also ongoing mentorship if required. If you are already attuned to level 1 then you are welcome to come for a top-up for a fee of £30. Booking through this page: http://www.amethystcentre.com/product/reiki-level-1-2-jul-16/

If any of you are already attuned to Reiki at Level 2, I will be accepting Reiki Master students from July.

A Feast for Foodies in #Coventry on 11th June !

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Broadgate in the heart of Coventry city centre is the venue for the first Coventry Food and Drink Festival on Saturday the 11th June. The event which is exclusively sponsored by Lexus Coventry boasts more than 40 of the finest food and drink traders from all over Warwickshire and the Midlands. With fine foods, fizz and ales for the adults and entertainment for children there is certainly something for everyone at the event which is open to the public from 10am until 6pm.

Louise Davis, the Managing Director of organisers LEAD Event Management said, ‘as a company we are delighted to bring an event such as this to the heart of Coventry. Other towns and cities across the country have such events and so it seemed natural to us that Coventry and the wonderfully renovated Broadgate should have its own event. In order to make them accessible to all, our events always offer free entry to the public. We also aim to focus and champion local businesses and the exhibitor list for this first event in Coventry really is impressive. It provides something for everyone and gives us the grounding for what we and our sponsors Lexus Coventry hope will become an annual event’.

food fest cov
The event is free to enter and open to the public from 10am until 6pm so get along to Broadgate on Saturday. Arrive hungry and leave happy!

From Fashion to Dog Walking – Chase your Dream the way Carrie Stuthridge did !

Carrie, 34, took a leap of faith in 2013 and gave up her full time job training to become a buyer in the fashion industry to become a dog walker for a small dog walking and pet care company in Coventry.

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‘Life could not have changed so dramatically, I went from getting dressed up in heels to go to work for the day in an office to wearing waterproofs and wellies!’

After a few months, Carrie attended Crufts and started to enquire about how she could expand her knowledge and how she could help people with their problem dogs.  It was here she came across a course at IABTC near Doncaster where she could study Canine Behaviour.

In less than a year, the decision was made to take up studying again to improve her knowledge. ‘It was such a hard decision, as I knew it would be a tough year as I had a large client base, so juggling studying alongside working full time would be hard work, but I knew it was something I was passionate about and I was excited!’

After studying for a year, Carrie decided to leave the company where was a successful franchisee.  It wasn’t an easy decision to make, as it had started out as just herself and the owner.  Over the 2 and ½ years she had put a lot of her own time an energy into building up the business, managing an area of Coventry and as the business had grown she had to employ assistants, which she hired and trained herself to a high standard.

So in March this year, Carrie’s Canine’s & Friends was launched in Coventry.  She provides dog walking, puppy sitting, cat visits and small pet care services.  She can also help you with your dog’s behavioural problems and will soon be setting up a training school.
Carrie is currently working towards becoming a KCAI Accredited Dog Training Instructor and Canine Behaviourist with the Kennel Club.  She also regularly attends seminars and training courses to update her knowledge, which is of paramount importance to her.

‘It was the best life changing decision I’ve ever made and I know encourage people to chase their dream, life is too short to work in a job that you don’t enjoy’.

Contact Carrie Stuthridge at :

Carrie’s Canines & Friends
www.carriescanines.co.uk
07710628449