Payroll Update: Holiday Pay

Published: December 5, 2022

As you may know employers are obliged to make changes to the way in which they calculate annual leave. As this has been enforced by law to start immediately, (part way through a financial year), this has presented challenges with respect to incorporating holiday already taken during the year (including outstanding leave from previous years) and what remains this side of the end of March (or to the end of your holiday year). There are two main remits for this:

  1. No one should be paid less for being on holiday than they would have been paid had they been working (based on a normal week).
  2. All staff are entitled to 5.6 weeks holiday per year. What constitutes a ‘week’ depends on the working pattern of the staff member. It usually starts on a Sunday and ends on a Saturday. For example if a staff member works 5 days a week, 1 week’s holiday is 5 days. If they work 2 days per week, then 1 week is 2 days and so on. Where the working pattern is irregular, an average working pattern is calculated based on a 52- week period.

In order for you, our service users, to get through the Christmas period without concerns about holiday pay, please simply put the holiday taken on the timesheets as normal, and we will pay at least the normal pay rate for this. Should we see that this would mean excessively overpaid hours, we will inform you of this prior to running the payroll.

To prepare for the new payroll year, during February and March, the LCiL Payroll Team will calculate all holiday time for the year, taken and remaining. We will inform you of this. We can then start the new holiday year with a ‘clean slate’ and a clear knowledge of what holiday is due going forward. This will be presented to you as Holiday Taken and Holiday Remaining.

LCiL Payroll Team would like to take this opportunity, however, to remind you that, though we are happy to administer holidays on your behalf, responsibility remains with you, the Employer, to ensure staff are enabled and encouraged to take their full statutory minimum 5.6 weeks holiday entitlement during the holiday year.

For more information on the above please check the following links:

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