From the 1 July 2015 new holiday pay rules came into effect. The Employment Appeal Tribunal ruled that employers must factor in overtime, commissions and bonuses when making holiday pay calculations instead of just basic pay.
If your employees receive irregular remuneration due to the inclusion of the above factors you will need to calculate holiday pay based on total earnings of the previous 12 weeks.
The ruling covers the 4 weeks (20 days) of annual leave stipulated by EU Working time directive and not the full 5.6 weeks provided under British law.
What to do? Check your holiday arrangements and see if any of your employee’s receive guaranteed or non-guaranteed overtime and any other work related payments such as monthly commissions or bonuses. These must be used to calculate holiday pay moving forward.
National Minimum Wage
As you maybe aware, there are significant proposals being made in respect of the living wage and proposed increases to wages in the years to come.
From 1 October 2015:
This is the largest real-terms increase in the National Minimum Wage since 2007, and more than 1.4 million of Britain’s lowest-paid workers are set to benefit.
What to do? If any of your current employees are receiving the current level of NMW you must increase their rate to the appropriate level or face fines from the HMRC.
We have a new policy to cover the process and procedure related to Childcare Voucher schemes being used in the workplace.
What to do? If you are offering child care vouchers ensure you have a policy and clear procedures in place and variation of contract letters prepared for staff who use the scheme.
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