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Holiday Pay - am i correct they are short changing worker?

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got a friend popped around

says he thinks hes being short changed

 

has asked several times about his holiday pay rate

and is being stone walled or constantly fobbed off.

 

can someone please check his workings attached

 

and point me to a suitable letter to give them a good poke to sort it please..

 

not my bag this.

 

dx


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You appear to have scanned a delivery note for a PSU and included it on the last page. Personal information is showing, so I have unapproved your attachment.


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It would depend whats written into his contract if employment re holiday pay.

 

My Mrs for example, has her holiday worked out based on an average of hours worked over the previous 17 weeks, some just pay basic hourly rate on an 8 hr day or 7 1/2 hr day.


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opps done how did that get in there not even me!!

 

 

dx


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zero hours contract I believe he said


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Is the 'Units' supposed to be a daily rate of pay? And is the 'Rate' column the hourly rate of pay?

 

Also assuming that the employee is under 25 as if that is the rate of pay it is below NLW rate for over 25s?


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under 25

the rest?

 

£6.70 hourly rate? varies to 6.95

 

I think units is hours worked on that shift

rate is hourly rate.

 

 

dx


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National Minimum Wage and National Living Wage rates: https://www.gov.uk/national-minimum-wage-rates


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so the £6.70 and the £6.95 tallies with what he should be getting...as under 25 and over 21.

 

 

is his assumption the holiday rate is wrong correct.

how do you workout holiday entitlement...

not my bag employment sadly...


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I would also point the friend to ACAS: http://www.acas.org.uk/index.aspx?articleid=4468


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It is tricky based on the evidence provided as the number of hours worked seems to vary. Every employee should receive 5.6 weeks annual leave (which can include Bank Holidays)

 

A week's holiday should be paid at the same rate as a normal working week. Looking at the payslip for March 2017, this looks to be correct if that is a flat week - 39 hours worked at £6.95 per hour. 10 days (2 weeks/78 hours) holiday pay at £6.95 per hour

 

For the January payslip it looks as though two normal 39 hour weeks were worked then two days holiday were taken in Week 3 and the same in Week 4 = 4 days holiday which has been paid at the rate of £6.06 per hour instead of £6.95. By my reckoning the holiday pay due for that month should have been 32 hours at £6.95 = £222.40, so £27.40 owed

 

Where it gets complicated is that the other payslips show varying numbers of hours worked, which suggests that the employee does not actually work a standard 39 hour week - sometimes it is over and sometimes it is under. In those circumstances a 'normal' working week cannot just be paid as the amounts vary week to week, so the employer would have to use a 12 week reference period to calculate average hours worked and then paid at the usual rate of pay.

 

Some good guidance here http://www.acas.org.uk/index.aspx?articleid=4109

 

So, from the information provided I cannot work out precisely how it has all been calculated, so it would need to know the nature of the contract - What are the normal contracted working hours each week? Why does it vary so much in some months?

 

From an escalation point of view, there are two approaches. In the first instance (and it does look as though your man has done his homework so I won't argue with that), the employee should write to Payroll, highlighting the discrepancies that are believed to exist and ask nicely for an explanation of how the holiday pay was calculated, or for the balance to be paid.

 

The legal route (never a good idea to go in all guns blazing from the start if you value your job) would be a Letter Before Claim asking for the outstanding balance to be paid (and with a breakdown included) within X days before action is taken to recover the balance. Traditionally this would be via an Employment Tribunal under a breach of Section 13 Employment Rights Act (Unlawful Deductions from Wages) but since the introduction of fees in the ET (and it would cost way more than could be recovered to go via this route), a lot of cases would now be pursued via MCOL as a breach of contract claim.

 

Far better to try and resolve it through dialogue so a chat with Payroll so that they can explain how the amounts were calculated


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thanks you two

great work

i'll pose the questions to the gentleman and point him here to read as well

 

 

i'll update when required

 

 

great work.

 

 

dx


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oh this is in Scotland if it makes any odds


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No - the laws regarding holiday pay are (at least currently!) applicable to the UK as a whole


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I saw him today and he's going to find out more

but he says the payroll is done by a new external company and the boss is being obstructive upon who it is.

and until this change it was ok

 

 

they are seeming to blame 'them' but wont tell him who to write too

 

 

dx

 

 

dx


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Ok, the difference in pay from the oldest pay slip is trhe change in the minimum wage. It appears as though they are paying holiday on a daily rate rather than an hourly one. The 10 days holiday is correct, the 4 days holiday appears to be at a rate of £6.30ph, which is wrong, even if they were using the £6.70ph pay rate ( dont know why, perhaps they think it is all they need to pay as the entitlement was accrued some time before).

Your friend should raise this with the payroll people

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