BDO Know How April 2016: Holiday Miscalculations
27 April 2016
As you may have seen in the news recently, a large amount of employers have inadvertently been miscalculating holiday pay for their staff.
This miscalculation generally arises from businesses whose staff work on a roster system, or whose hours fluctuate from week to week.
What is the issue?
Holiday pay can be calculated two ways - it is either based on ordinary weekly pay at the start of the holiday or on average weekly earnings over the year. Employers must pay the higher amount to staff, but have not always been
doing so.
If you have any questions about these calculations or would like to ensure you are meeting your obligations as an employer and calculating these correctly, please feel free to contact us.