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Overtime & Holiday Pay

Emma

Hi Everyone,

As an organisation we have not really been too worried about overtime on holiday pay as we do not have contractual overtime.  However now that the law has changed to 'regular' overtime (whatever that means!), we are starting to get more concerned.

We are a privately owned Manufacturing business, I was wondering what other companies with regular overtime are doing.  Have you started to pay overtime on holiday pay, we currently do nothing?  

Just trying to find out what other organisations are doing with this now.

Many thanks,

Emma 

Parents
  • Most of our clients have now switched but a few continue to live in hope.
    Those that have done so have either gone for P60 earnings or last holiday year earnings and others have done last 12/13 weeks.
    The real dilemma is determining who is a regular overtime earner and the easy answer is just to do P^0 or recent average that means even the irregulars get a little extra when they go on holiday
    The other problem potentially is those groups with irregular overtime and when it becomes regular! This says to me -just pay it rather than rely on putting a well meaning but confusing bit of law into everyday practice.
  • in reply to Peter Stanway
    I think Peter's advice is sound. In many cases, the cost and time of setting up detailed ad hoc calculations in time recording and payroll, maintaining the systems to continue to do it correctly, and actually explaining the calculations to staff is probably higher than taking a broad brush approach and applying it to everyone.
    Funnily enough, this is exactly what happens in France, where a simple calculation is carried out to establish if average daily earnings over the previous 12 months; if the figure is higher than normal pay, it is used instead of normal earnings for the days in question. The system is much appreciated by shiftworkers and people on commission. All is not perfect over here - many other aspects of french payroll make it one of the most complicated in the world IMHO!
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  • in reply to Peter Stanway
    I think Peter's advice is sound. In many cases, the cost and time of setting up detailed ad hoc calculations in time recording and payroll, maintaining the systems to continue to do it correctly, and actually explaining the calculations to staff is probably higher than taking a broad brush approach and applying it to everyone.
    Funnily enough, this is exactly what happens in France, where a simple calculation is carried out to establish if average daily earnings over the previous 12 months; if the figure is higher than normal pay, it is used instead of normal earnings for the days in question. The system is much appreciated by shiftworkers and people on commission. All is not perfect over here - many other aspects of french payroll make it one of the most complicated in the world IMHO!
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