Rolled-up Holiday Pay - Frequently Asked Questions
Will the changes mean that staff will see a decrease in their take-home pay?
No. These changes will not be result in a detriment for any member of staff, and they will ultimately see no changes in their pay-slip. The purpose of adopting this new approach is to record paid annual leave against specific time off work to satisfy the legal requirements.
What if an employee works full-time at the moment and there is no period in which they could be recorded as being on annual leave?
If this is the case, the employee might be on the wrong type of contract and their line-manager should approach Human Resources to discuss the specific issue.
Can the employee book a specific time-off in advance?
The individual can choose to either be paid for the annual leave accrued as and when they accrue it, or they can choose to only receive their hourly rate of pay, and save their annual leave entitlement for a specific date. If this is requested. Section 2 of the timesheet should NOT be completed, and the proportion of annual leave accrued should be recorded. When the individual wishes to take the paid annual leave this should be recorded on Section 1 of the timesheet, clearly marked as “Paid Holidays”. Again, Section 2 of the timesheet should NOT be completed in such instances.
Will this have any impact on any redundancy entitlement/calculation?
No. The basic hourly rate of pay has always been used for calculating redundancy pay, therefore there will be no changes in the way this calculation is made.
Will contracts look different?
Yes, as the hourly rate of pay will appear to be lower as it will not incorporate the payment for holidays accrued.