Holiday Pay Entitlement: All You Need to Know
As a small business owner it is vital that you understand holiday pay entitlement. A Glasgow accountant from The Kelvin Partnership will guide you and your team through all aspects of understanding holiday pay.
As we mentioned in our last post, we are passionate about helping businesses grow and thrive in this difficult and unsure climate. As we are experienced in providing accounting services for personal and professional clients, we understand how to go about catering to a variety of accounting needs.
Holiday Pay Entitlement Advice from The Kelvin Partnership
Basics of Holiday Pay Entitlement
- Most workers who have an employee contract and work a 5 day week are legally required to receive at least 28 days annual leave per year.
- As a small business owner it is up to you whether you offer full time employees more than this legal minimum amount.
- Also, as the employer, you can decide if you would like staff to be employed for a certain amount of time before they become entitled to statutory leave. You can also decide whether this statutory leave includes bank holidays.
Employees are entitled to a week’s pay for every week of leave they take. For example; if your employee is salaried, a week’s holiday pay would be equal to how much they get for a week’s worth of work.
However, if your employee works a dedicated shift pattern and is paid at an hourly rate, a week’s holiday pay is equal to the average number of weekly fixed hours they have worked in the previous 12 weeks.
Managing Holiday Requests
Effectively managing how and when your employees take their holidays is unique to each business. However in general, notice for taking time off should be twice as long as the amount of days holiday the employee wants to take. So, for example; if your employee wishes to take one day holiday they should give you at least two days notice.
Time Off During a Worked Notice Period
If your employee has handed in their notice, then they are allowed to take whatever is left of their statutory annual leave. If your employee doesn’t take the remaining amount of holiday before they leave, then you can reach an agreement of them receiving the holiday amount in the form of payment.
Turn to The Kelvin Partnership with all aspects of your accounting needs.