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Pay has been cut - but should holiday pay be 100%?

2 replies

Sammyset · 03/06/2020 14:09

Everyone in my company has taken a 10% temporary pay cut, and has needed to agreed to this.

I have some leave coming up (which I can cancel as we can't go away).

But, if I take the leave during the pay cut period, should it be paid at the 100% rate rather than the temporary 90%?

Some of it at least will have been accrued when I was earning at the 100% level.

Thanks Smile

OP posts:
flowery · 03/06/2020 17:22

Interesting one. Pay whilst on holiday should be a normal week's pay, so you should get the same while on holiday as you would get under the current contract you are working under if you were at work doing your normal hours. If the pay cut is because of furlough that is different.

You wouldn't normally expect to get paid more for being on holiday than you would if you were at work.

If your pay varies because of hours, or commission/overtime or other things, then an average needs to be taken. But if everything is the same it's just your contractual pay is less than it was before, I'm struggling to see where the argument would be that you should get paid at a higher rate on holiday than in the office.

Sammyset · 03/06/2020 19:27

Thanks @flowery 🙂

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