Holiday Pay

A worker is entitled to be paid during statutory annual leave at a rate of a week’s pay for each week of leave. The Working Time Regulations do not explain how holiday pay should be calculated.

Many businesses base their calculation of holiday pay on basic salary. However, because of several decisions in 2014, it is now clear that payments that are inherently linked to the worker’s performance should also be included. This covers commission payments, compulsory overtime, and non-guaranteed overtime which the worker must work when asked to. It may also include voluntary overtime, depending on how regularly it is worked, and other types of standby payments and shift / antisocial working allowances.

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