Holiday pay

[stunner1901]

Hi guys

Can you please help me with an issue re holiday payments

My company gives a 40 hour contract with 4 hours unpaid breaks thus giving 144 hours pay per 4 weekly cycle (36 per week)

Holiday pay is paid in line with this ie 10% gets deducted as break time

Surely this is incorrect or am I wrong?

We get 224 hours entitlement = 28 days but then lose 22.4 hours in break deductions!!!!

Also point 2 is a new bonus scheme has been introduced now so does this mean that holiday pay should be based on the average hourly rate of the previous 12 weeks on an individual person basis

Also as a "supervisor" I get a premium of £1.50 per hour should this be included in calculations or is it exempt as it is only a premium?

Thanks in advance

[ostell]

Re: Holiday pay

First of all the link: https://www.gov.uk/holiday-entitleme...ts/entitlement

You are entitled to 5.6 weeks or 28 days paid holiday.

There should be no deduction because of breaks while you are working, it should be based on the hours that you work, subject to the legislation so that the result is what is required by law.

What is this 4 week cycle? Are you paid every 4 weeks?

There has been a recent change in the holiday entitlement in that it should be based on the actual wage, ie bonuses etc. I'm not too clear on this so I'll leave that for others to expand.

[stunner1901]

Re: Holiday pay

Thanks Ostell

Yes we are paid every 4 weeks

The company say that we are contracted to work 36 hours with 4 additional hours for breaks

However the contract says 40 hours per week with 4 hours unpaid breaks

SO not sure if they are exploiting a loophole but as it costs me almost £200 a year I want to be certain

Thanks again

[matt3942]

Re: Holiday pay

I'm confused as to whether we're talking about holiday entitlement or rest breaks.

The statutory minimum number of holidays is 28 days, and the statutory minimum rest break is 20 minutes if you work more than 6 hours a day. Your rest breaks do not affect your holiday entitlement.

The confusion with the contract term is in the way it's phrased. If the term stated '40 hours per week including or plus 4 hours unpaid breaks' we would be able to advise you either way.

I presume you know how many hours you spend at work each week - is it 40 or 44?

- Matt

[ostell]

Re: Holiday pay

Thanks Ostell

Yes we are paid every 4 weeks

The company say that we are contracted to work 36 hours with 4 additional hours for breaks

However the contract says 40 hours per week with 4 hours unpaid breaks

So this is regular hours with pay every 4 weeks (How I hate that system!). So you should be getting 5.6 weeks/28 days holiday per year. This is the minimum. Looks like they are working a fiddle or don't understand the rules to give you less holiday AND reduce the amount they pay you. Misunderstanding of the regulations is not uncommon.

Go through the reckoner on the web site I gave you and see what that says. If you work a 5 day week then it's even easier for the calculation.

If they've got it wrong for the past few years are they going to compensate?

[stunner1901]

Re: Holiday pay

Hi guys

Matt - We work 40 hours but have 4 hours unpaid break and the contract states "40 hours with 4 hours unpaid breaks"

I have just had confirmation from our payroll team that they do deduct breaks from holiday pay. so we get paid 28 days at 7.2 hours per day

Ostell - The reckoner says 28 days but the question is should that be at 8 hours per day or 7.2 hours after break deducted?

Regular hours with ,now, the addition of a bonus scheme

thanks

[matt3942]

Re: Holiday pay

Hi [MENTION=5373]stunner1901[/MENTION] - Your holiday pay should be what you would normally get paid had you worked on that day. So if you are normally paid 7.2 hours per day, your holiday pay will also be 7.2 hours per day, which seems to be the case.

- Matt

[teaboy2]

Re: Holiday pay

I agree with Matt.

Your working 8hrs per day over 5 days so your break period each day is 48mins! as 0.8hrs is unpaid break per day. Meaning your paid for 7.2hrs (7hrs 12minutes) per day!

48*5=240mins 240/60= 4hrs!!