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My basic wage is approx £360 pw yet when I take a holiday it drops to approx £220. Is it legal for my employer to do this? I asked him about it and he cant explain just claims that it dates back to an old system were wages had bonuses added into it and when you removed those you were left with the lesser amount. he admits that the old system is long gone in favour of a basic wage.
We feel we have been short changed for a long time, is it legal and if not are we entitled to a back date?
holiday pay should be paid at the same rate as your normal pay. You may get a higher rate of holiday pay if your contract gives you the right to a higher rate.
s.27(1) of the ERA 1996 defines wages as Holiday Pay also. Thus this is an unlawful deduction from wages.
Explain this to your employer informally first. If he doesn't pay, submit a grievance. Once this is concluded consider a claim.
As this is a breach of contract you may be entitled to back date your claim for six years - but check this.
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Please post on a thread before sending a PM. My opinion's are not expressed as agent or representative of The Consumer Action Group. Always seek professional advice from a qualified legal adviser before acting. If I have helped you please feel free to click on the black star.
I am sorry that work means I don't get into the Employment Forum as often as I would like these days, but nonetheless I'll try to pop in when I can.
holiday laws and entitlements are made more complicated than they actually are. They are also changing every year at the moment so keep track.
But as above says it is a breach of contract and a breach of statutory law as you have not been paid in theory for the time off that you are entitled to.
From how you have worded it your employer seems to be a reasonable person, so have a chat with him and explain that you cannot afford these drops in pay when you are on holiday and that it is a breach of your contract and statutory law.
holiday laws and entitlements are made more complicated than they actually are. They are also changing every year at the moment so keep track.
But as above says it is a breach of contract and a breach of statutory law as you have not been paid in theory for the time off that you are entitled to.
From how you have worded it your employer seems to be a reasonable person, so have a chat with him and explain that you cannot afford these drops in pay when you are on holiday and that it is a breach of your contract and statutory law.
Thanks for all the advice, very interesting. Ive emailed the Labour Relations Agency and im waiting to hear back from them before I take it further. As for my employer being reasonable, I asked for holiday pay to be made level with basic pay at last years pay negotiations and he told me he couldnt afford to do it as it would cost him £16 000.
A number of my colleagues earn more than their basic wage per week in the form of payment for sleeping away from home ( £30 per night ) and 3 hours overtime on each of those nights. Should this be calculated into their holiday pay as some of them earn approx £600 pw then it drops to £220 on a holiday?.
Shift and rota workers, whose pay varies because they work their normal hours at varying times and in varying amounts in different weeks, have their week's pay calculated differently. Their average weekly hours of work, in the preceding twelve weeks, are multiplied by their average hourly rate. The hourly rate is calculated as above and includes any shift allowance which is payable.
a week's pay is the average pay received over the preceding 12 weeks. Any week for which no pay was due should be replaced by the last previous week for which pay was due.
Thus i would argue that a rolling average of 12 weeks pay shoud be used to calculate the holiday pay. You may well be entitled to the extra payments which are in my view akin to 'shift payments' as envisaged by ACAS.
It may depend exactly how these payments are referred to in your contract are they expenses or wages?
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Please post on a thread before sending a PM. My opinion's are not expressed as agent or representative of The Consumer Action Group. Always seek professional advice from a qualified legal adviser before acting. If I have helped you please feel free to click on the black star.
I am sorry that work means I don't get into the Employment Forum as often as I would like these days, but nonetheless I'll try to pop in when I can.
Thanks for the reply. I beleive the £30 payment per night is made as an expense to cover you sleeping away from home, the 3 hours overtime are paid as a wage regardless for each night you are away.
We dont have a shift allowance for day time operations although there are a number of drivers who do nights and im waiting to hear from them if they get any of their shift allowance paid in their holiday pay. I doubt if this is the case.
Our contract stipulates a 12 hour day for a standard basic wage then these other payments are made as applicable to each driver.
Thanks again for any help.
ps I received an email from the Labour relations Agency but they wont discuss via email so I have to phone them tomorrow. I'll post their opinion on here tomorrow.
An update on the saga of my holiday pay. I spoke to the Labour Relations Agency and they interpretted the legislation in my favour and believe that I am being short changed, they recommended I speak to my Union. I contacted them and they agree and are taking it to their legal people for clarification before we submit a grievance.
I find it amazing that there have been drivers there over 20 years and none of them have ever taken this up. Saying that I was there 6 months and had to do pay negotiations as nobody else would step up.
holiday pay
it drops to approx £220. Is it legal for my employer to do this? I asked him about it and he cant explain just claims that it dates back to an old system were wages had bonuses added into it and when you removed those you were left with the lesser amount. he admits that the old system is long gone in favour of a basic wage.
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Originally Posted by butterfly123
