holiday pay

[purplepixy]

Hi.

Been offered a new job. They said x per hour to include holiday pay. I've never had it offered like this before, can anyone explain what that means?

Thanks

You'd be best to get them to clarify but when I was paid like this my wage slip would show holiday pay each month - the amount I got each month would be calculated from how many hours I had worked. The idea was you saved the holiday pay each month and used it when you actually took holiday.

Thanks for the reply.

Think I understand, so he has offered 10per hour but it will really be say 9.50 but topped up to 10 then when I take holiday leave won't be paid?

It's a great offer apart from this, just never come across it being offered like this before.

I'm no expert but I'm not sure Rule's scenario is legal any more. Holiday pay is just that: money you get when you're on hols. It should be the same as your normal pay, barring ad hoc overtime I think.

Sounds like what the company is offering OP is "rolled up holiday pay" - definitely illegal these days: www.gov.uk/holiday-entitlement-rights/holiday-pay-the-basics

Sorry on phone. Reading back I think Rukes situation is the same : rolled up holiday pay. Not legal.

Thanks confused. I'll ask him to clarify, just didn't want to appear like I had no idea, Lol!

If it's a full time job with contracted hours then not legal, if it's a zero contract/bank job then that is normal

The bit that's illegal about "rolled up holiday pay" is paying it at the same time as the rest of the pay, and quoting a pay rate including holiday pay.

I employed loads of short-term casual workers for seasonal work. Their actual pay rate was £7.80 per hour, but for every hour they worked they accrued 5 minutes of paid holiday entitlement worth £0.65. It would have been illegal for me to advertise the job as being paid at £8.45 per hour (even if this was stated as including holiday pay) and illegal for me to pay them £8.45 per hour worked as a lump sum.

However, two months later (by which the temporary activity was over anyway) they got their holiday pay so theoretically they had some time being paid but not working.

It works fine for part time and temporary work but if the job is close to full time hours and all year round you need to be cautious - are they expecting you to work 52 weeks a year will this system?

Is it a zero hours contract? If so then holiday pay is often paid in this way, as you're still entitled to it but it's not a fixed number of days per year (as you/they don't know how many days you'll work) so instead it's calculated as a % of salary and paid per hour worked.

These paid on a contract/sessional /hourly basis are paid holiday on top of the salary amount rather than accruing paid holiday leave. So you would receive an allowance in line with the amount you work and not be paid while on leave.

I don't think that's right any more is it? I thought that temp / casual workers got an average of their last 12 or 13 weeks pay. And if they left without taking holiday then yes they would get all holiday pay they have accrued.
Happy to be corrected if I'm wrong.

Thanks everyone. It's an permanent part time job. 22.5 hours a week.

If it's always 22.5 hours per week then they should just pay you the basic salary all year round and you are entitled to a minimum of 5.6 weeks of paid holiday per year (more if full time employees get more, they aren't allowed to treat part-timers less favourably).

22.5 hours a week over 365 days less 5.6 weeks holiday is 1047.2 hours of work

So if £10 per hour is "inclusive of holiday pay" - which is meaningless for this kind of job, I reckon he means that he intends to pay you a total of £10,472 for this work. That would translate to an actual gross pay (before tax, national insurance and pension) of £8.93 per hour. Not a bad pay rate as such, but the fact he's trying to deceive you into thinking you're paid more rings alarm bells for me.

Wow, thanks a lot itlypocerka, that's really great of you to work all that all for me.

I am going to email him as 8.93 per hour isn't going to be enough as I am dropping hours as well.

Think I might end up sticking where I am!

You were right, it is 8.93 per hour said rounded up to 9 though. Strange way of offering it, but least I'm clear.

Thanks