When you employ staff you must give them a certain amount of annual leave, and pay them during this time.
If your employees work a set amount of hours, and received a fixed salary, calculating their annual leave entitlement and holiday pay is straightforward. However, if staff have irregular hours, work overtime, or receive commissions or bonuses then calculating holiday pay can get quite tricky.
To help new business owners and employers understand the regulations on calculating holiday pay, we asked employment law expert, Peter Done to explain the key points for small businesses;
As an employer you are required by law to give your employees a certain number of days holiday during the year. The amount of annual leave employees are entitled to depends on several factors.
This guide to leave entitlement for small business owners explains the amount of holiday you are required by UK law to give your employees, and how to calculate this for workers not working a normal working week.
Also covered are the laws regarding bank holidays, carrying over unused leave days, imposing a period of annual leave on staff e.g. over the festive season, and when you can refuse employees’ requests to take holiday;