What Is Holiday Pay?
Holiday Pay is used to book holiday and administer payment for holiday taken. It relates to PAYE Workers only. The annual entitlement is pro-rated for part-time workers.
How is Holiday Pay calculated?
Holiday pay is calculated by adding holiday pay 12.07% (5.6/46.4 weeks) to the basic pay rate. Out of 52 weeks a year, you work 46.4 weeks, so you are entitled to 5.6 weeks statutory holiday (52 weeks – 46.4 weeks = 5.6 weeks)
E.g. If your basic hourly rate is £10.00, the holiday pay calculation will be as follows:
Basic pay Rate = £10 x 12.07% = £1.20 The Holiday pay accrued is therefore £1.20 per hour.
Holiday pay is ONLY accrued on basic working hours and overtime; bonuses and expenses are not included.
Who is entitled to Holiday Pay?
Holiday pay is available to temporary workers of PAYE status only. Travel Trade recruitment is not responsible for paying holiday pay to workers who work via a Limited Company. It is the Limited Company’s responsibility to ensure their workers receive holiday pay.
When will I be paid my Holiday Pay?
Holiday pay is paid in the same way as normal worked days i.e. weekly in arrears. Should holiday and worked days occur in the same week and your worked timesheet is received in time, a single payslip will be produced and will show both pay types on one payslip.
Can I ‘claim’ Holiday Pay at any point during an assignment?
Yes, but you can only be paid for holiday accrued, and it can only be paid on the basis that you are not working on the days booked.
If I have finished my assignment and do not start the next assignment immediately, do I need to request my P45 to claim my holiday entitlement?
No, the entitlement remains with you, and should you take on a further assignment your accrual will continue to accumulate. If you have a gap between assignments, we would suggest that you book this time as holiday.
Who do I contact if I do not believe that my Holiday Pay is correct?
It is unlikely that the amount shown on the payslip is incorrect as it reflects your requested holiday booking. However, if you have a query, please contact accounts@traveltraderecruitment.co.uk
Is the holiday accrued capped?
No, the accrual is based on the Number of Working Time Regulation hours worked
Is Holiday Pay taxed?
Yes, it is taxed when it is paid, not when it is deducted.
Can I receive Holiday Pay without a holiday being taken?
Holiday pay can only be paid for holiday taken. The legislation does not allow holiday pay to be paid for any reason other than holiday.
Do I get paid bank holidays? Is this an automatic process if I do?
Yes, if you have holiday accrued. To claim your holiday entitlement on bank holidays you will need to book this holiday on your timesheet for that week.
When does the holiday year run from and to?
The holiday year runs from 1st of January to the 31st of December each year.
Can I carry over holiday entitlement to the next holiday year?
All entitlement to leave must be taken during the course of the holiday year in which it is accrued and none may be carried forward to next year. Failure to take any holiday by the end of the holiday year in which the entitlement arises will result in such outstanding holiday being lost.
Due to the holiday pay being paid weekly in arrears, when is the last time I can claim holiday at the end of the holiday year?
Unused holiday entitlement at the end of a holiday year can be claimed in the first week of the new holiday year up to a maximum of 5 days on the basis that the days are not worked and that you normally work 5 days a week. Unused holiday entitlement after this date will be lost.
Can I recieve Holiday Pay if my holiday entitlement is not sufficient to cover the booked holiday period?
You are paid holiday to the value of your holiday entitlement. Holiday taken in excess of the entitlement is treated as leave without pay.
Can I book holiday for the same day as worked?
Holiday can be booked for a worked day for half a day’s (4 hours) holiday on the basis that the worked hours do not exceed 4 hours.
If I haven’t accrued enough holidays can I take unpaid leave?
Yes, any holiday taken for which there has not been enough holiday entitlement accrued is treated as leave without pay.
Can I book holidays on days that fall outside my normal work pattern e.g. Monday-Friday?
Days not normally worked cannot be booked as holiday
