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Lower rate of pay for annual leave

17 replies

Squeezed · 06/05/2017 16:24

There's been a long line of issues regarding pay and treatment from pregnancy and maternity. This is the latest and again it's causing anxiety for me. I requested starting my annual leave after unpaid part of maternity leave. The daily rate of pay has been calculated as if I worked a 7 day week instead of 5, giving a lower daily rate for the annual leave I have taken. This works out as being paid the equivalent of two days less for a week of leave. There is a very user unfriendly computer system that actions this, prompted by my manager. Does anyone have experience about how I might be able to approach correcting this. I was going to ask for manager to change my return to work day to two days earlier and see how that goes but any other advice would be very gratefully received.

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LIZS · 06/05/2017 16:36

Are they paying you @ 5 days per week's leave or 7.

Squeezed · 06/05/2017 16:41

Paying me for 5 days annual leave, I work 5 days a week, but they've divided the weekly salary by 7, then multiplied it by 5. Sorry it's difficult to explain.

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ColdAsIceCubes · 06/05/2017 16:45

www.acas.org.uk/media/pdf/7/o/Holidays-and-holiday-pay.pdf

This might be useful to read? I'm not up to speed with current laws, but I know acas usually are.

Squeezed · 06/05/2017 16:56

Thanks cold. I might give acas a call again. It might be because of a new computer system that the data needs to be entered differently by them. Just doesn't seem right that annual leave is paid at a lower rate like this.

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GahBuggerit · 06/05/2017 17:23

My guess is they are using sap hcm or similar thats integrated with payroll and they haven't amended your working pattern.

Have you spoken to hr?

Squeezed · 06/05/2017 17:35

Thanks gah. It's a new system and seems to work it out differently. So if the working pattern hasn't been correctly applied then that might account for it. So does that mean they should amend it so I'm paid the correct daily rate? I've not spoken to hr, it's subcontracted out for the processing side of things and they aren't good at resolving issues, like paying SMP from months ago or responding. I've been given a lot of inaccurate information that has cost me a lot of money and I can't do anything about it unfortunately. I'm going to speak to the in house hr people (sorry the structure is confusing) to see if they can help.

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GahBuggerit · 06/05/2017 17:44

Id be surprised if that wasn't the problem. If someone has entered or amended your working pattern incorrectly as 7 days and it's linked with payroll then it will calculate your holidays as 7 days for a weeks annual leave.

I assuming it's been implemented while you've been on mat leave?

caroldecker · 06/05/2017 17:52

It's wrong - how you get them to change it will take perseverance.

Fourmagpies · 06/05/2017 17:54

It depends what is in your contract. If it doesn't state 260 days (5 a week), HMRC guidance is to assume 365 which is a bit shit and not something I'd realised until recently. I always assume 260 as that makes more sense.

GahBuggerit · 06/05/2017 18:10

I'm not sure that's correct? Surely that contravenes the working time directives?

Squeezed · 06/05/2017 18:13

I've not been paid correctly while on SMP, since the system came in. As I recall, the contract just says the number of days annual leave.
I've got the perseverance, but they do bank on people giving up and not chasing up querie, complaints etc.
My manager has failed to do a number of tasks that were required so I might be able to persuade him to chase it also.

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Fourmagpies · 06/05/2017 18:59

I can't find the HMRC page I found it on but this article says the same refreshinglawltd.co.uk/2015/07/calculating-holiday-pay-employee-leaving-us-calculate-owed/

Squeezed · 06/05/2017 19:25

That's really helpful four. The break down they've given me would fluctuate the daily rate by each month, dividing monthly salary by the number of days. So this would be different to the calculations dividing by 365 or 260. So I would assume that they aren't using that calculation.
Out of interest Gah what are the working time directives that would be contravened?

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GahBuggerit · 07/05/2017 06:55

Imo It implies you work more days than you do, so using 365 means you aren't getting the stat min paid time off work as per the wtd. It also brings down your hourly rate so if you were on min wage this would be illegal

Plenty of link's to support this but am happy to be proved wrong. Although it's certainly not a calculation I'd use as I don't fancy defending another ET!

books.google.co.uk/books?id=n0onDAAAQBAJ&pg=PA226&lpg=PA226&dq=holiday+pay+calculated+at+365+days&source=bl&ots=lWh4SGKSFr&sig=k9M2aI9yX4ZJhwAxLBc629wD6Ic&hl=en&sa=X&ved=0ahUKEwiQ-4iCmNzTAhWhJ8AKHf1GCec4FBDoAQggMAI#v=onepage&q=holiday%20pay%20calculated%20at%20365%20days&f=false

Squeezed · 07/05/2017 07:25

Thanks. That makes sense. As the calculation was made for March the calculation implies I work 372 days a year. I know the public sector want us to do more for less, but that's ridiculous!

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Squeezed · 07/05/2017 07:31

There aren't that many days in the year Smile

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