Average Holiday Pay

Dear colleagues

As you will be aware, employers must ensure that when an employee takes a holiday from work the pay they receive while on holiday reflects what they would ordinarily expect to receive when they weren’t on holiday.

Following an audit of our average holiday pay calculation process, it has been highlighted that a number of weekly paid colleagues have been over or under paid. Salaried monthly paid colleagues are unaffected.

All colleagues that have been underpaid have been sent a letter to their home address which explains that any outstanding payment due will be made on 18 April.

We will not be directly contacting anyone who has been overpaid nor will we reclaim any monies made as a result of overpayment.

Below we have created some helpful FAQs which we hope will help answer your queries. If you have any further questions or concerns, please contact [email protected]


FAQs

What is average holiday pay?
Average holiday pay was introduced to ensure an employee’s pay reflects what they would ordinarily expect to receive when they weren’t on holiday.

How do you work out how much the payment is?
The calculation is made based on a colleague’s average earnings for the 52 week period prior to each holiday, including overtime.

I have received a letter, when will the money be paid?
Outstanding payments will be made on 18 April.

I’m paid monthly, am I affected?
Monthly paid colleagues are not affected.

If I’ve been overpaid, will you be reclaiming the money?
We will not reclaim any overpayments which have been made.

What time period were the over and underpayments from?
The timeframe of this audit dates back to 2020.

What protocols are being put in place to stop this happening again?
Our Payroll team have put a robust protocol in place.

If I have any queries what should I do?
If you have any questions, please contact [email protected]