Holiday Notice and Calculating Holiday Pay

Holiday season will soon be upon us and many employers have questions regarding their employees’ holidays. Below you can read a short summary of some of the main points but, as always, please contact us if you require any further information on this.

Employers and employees can agree how and when to give notice of when leave is to be taken. But in the absence of any agreement the notice period should be at least twice the period of leave to be taken. So for example if a week’s leave is requested then two weeks notice should be given.
Restrictions on taking holidays may be stated in the contract of employment, implied from custom or practice, or incorporated into individual contracts from a collective agreement.

Employers may choose to:

• shut down for certain periods where workers have to use their annual entitlement
• nominate particular dates as days of closure when workers are expected to take annual leave
• determine the maximum amounts of leave that can be taken on any one occasion and also the periods when leave may be taken
• determine the number of workers who can be off at any one time.

Calculating holiday pay:

Holiday pay for workers paid a fixed wage or salary:
If a worker’s working hours do not vary, a week’s pay is the pay due for the basic contracted hours.

Holiday pay for workers with no normal working hours:
If a worker has no normal working hours then a week’s pay is the average pay received over the preceding 12 weeks in which they were paid.

Holiday pay for shift workers:
A week’s holiday pay equals the average number of hours worked in the previous 12 weeks at the average hourly rate.

Payment in lieu of holidays:
Payment in lieu of any untaken statutory holidays should only be given to employees on termination of employment, payment for holidays above the statutory can be agreed separately by the employer.

Payroll Services