Will Holiday Pay impact your business?

In accordance with the UK Working Time Regulations, employees are entitled to a minimum of 5.6 weeks (28 days) paid leave each year.

This considers 1.6 weeks (8 days) worth of Bank Holidays, where employees still receive their standard rate of pay (unless specified otherwise, e.g. double pay for hours worked on a Bank Holiday, or Bank Holidays are considered normal working days in your profession).

However, be aware that Holiday Pay legislation is changing drastically on 6^th of April 2020, creating added pressure for businesses to remain compliant and correct.

How is Holiday Pay changing?

The changes to legislation will require you to include every aspect of an employee’s pay in their Holiday Pay calculation.

This will include commission, additional payments and non-voluntary/voluntary overtime that are usually paid each month.

To quantify this change, if an employee earns an average of £500 commission each month, this would be included in their Holiday Pay.

But if an employee receives an annual bonus, you wouldn’t factor this in when making calculations.

This upcoming change will make accurately calculating Holiday Pay considerably more complex, as employers now have to factor in significantly more information.

Any questions?

If you’re unsure as to whether the changesto Holiday Pay will impact your organisation don’t worry.

We’ve created a Holiday Pay identifier to help you determine if your business will have to prepare for the coming changes.

In a couple of simple steps, you can learn what the law says and discover how you should be calculating entitlement and pay.

Click here to access our Holiday Pay identifier and find out if you’re ready.

IRIS Holiday Pay Module

We also offer a Holiday Pay Module that supports organisations with the changing legislation.

Our IRIS Holiday Pay Module offers a flexible solution for automatically configuring Holiday Pay, ensuring you never have to do a manual calculation again.

For more information on how our Holiday Pay Module can support you, click here.

Stephanie Coward

Managing Director, HCM

Stephanie Coward is Managing Director for HCM at IRIS, where she leads the strategy, innovation and growth of the organisation’s HR and payroll portfolio. She is responsible for positioning IRIS as a trusted partner to HR professionals and ensuring its solutions support the evolving needs of modern workforces.

With more than 25 years’ experience in the technology sector, Stephanie brings deep commercial and operational expertise, with a passion for improving the employee experience through technology.

Stephanie is committed to advancing IRIS’ HCM offering and helping organisations build more resilient, empowered workforces.