5. Holiday Pay

Holiday Pay

Once you have determined an employee's entitlement, you need to calculate how much they will get paid when on holiday. For each week of statutory holiday entitlement, employees are entitled to be paid a normal week's pay. A week's pay will be calculated as follows:

If an employee is paid a salary or is paid the same amount each week, then a week's pay is the amount due for a week's work under the employee's contract i.e. they would receive the same salary when on holiday. Where an employee has regular additional payments e.g. overtime or allowances (see below), then this needs to be taken into consideration when calculating holiday. This means that holiday pay has to be calculated based on the average...

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How much should an employee be paid when they go on holiday?

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