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25-05-19, 07:04AM

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Author Topic: Holiday pay calculations  (Read 1413 times)

MonkeH

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Holiday pay calculations
« on: 15-05-19, 03:08PM »
My question is based on the assumption that holiday pay is calculated at the higher of either A) contractual hours or B) average earnings over past 12 weeks.
If that's the case then please can you help me with the following:
A colleague I work with is taking 7 weeks leave as a lifestyle break. 3 of which will be made up using accrued annual leave entitlement.
He currently has been given the last 3 weeks as holiday and the first 4 as lifestyle break. As I see it this would lower his average earnings for the 12 week period and therefore lower his holiday pay.
Or would it not effect due to lifestyle break?!

Hope this makes sense!
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Welshie

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Re: Holiday pay calculations
« Reply #1 on: 15-05-19, 04:04PM »
Yes, if he does overtime then if he took the first 3 weeks as annual leave he would be entitled to more money than he would taking the last 3 weeks as annual leave.
If he doesn't work overtime then it's completely irrelevant which way he takes it .

Welshie

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Re: Holiday pay calculations
« Reply #2 on: 15-05-19, 04:07PM »
Can I add, you are not automatically entitled to a lifestyle break, you can apply but Tesco can refuse and in our store frequently make it difficult to take more than 2 weeks holiday at a time, so unless it's a lot of money is it worth the hassle of changing it.

MonkeH

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Re: Holiday pay calculations
« Reply #3 on: 15-05-19, 08:04PM »
The difference in contractual hours and overtime in this situation is quite large. So it's absolutely worth moving the holidays if they will let him 👍🏻

Thanks chaps

NightAndDay

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Re: Holiday pay calculations
« Reply #4 on: 15-05-19, 08:57PM »
Does the 12 week average reset at the beginning of the tax year or is it always rolling?

Grassa

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Re: Holiday pay calculations
« Reply #5 on: 16-05-19, 01:25AM »
it keeps rolling

Walker

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Re: Holiday pay calculations
« Reply #6 on: 16-05-19, 06:16AM »
My understanding is that the 12 week average only includes full weeks i.e. not ones where you have had a full weeks holiday or sickness.  I am really not sure how unpaid absence on a lifestyle break would affect the calculation.
« Last Edit: 16-05-19, 06:25AM by Walker »

Redshoes

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Re: Holiday pay calculations
« Reply #7 on: 16-05-19, 09:04AM »
My understanding is that holiday is always attached to a lifestyle break so that the colleague does not come back with outstanding holidays that would have been used during that time. I have not seen this on paper but there is a brief online. I have only ever known one person who has taken a lifestyle break and they had holidays at the end.