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HR buddies

The Covent Garden HR Buddies is an initiative facilitated by Clarkslegal to offer the London HR community the opportunity to meet with like-minded peers, attend relevant seminars and workshops and boost your knowhow of the issues specific to this sector.
 
It’s free and open to anyone interested in HR. It sets its own agenda, so it can be purely social or facilitate presentations to help prevent HR problems for companies in the London area. So if you want to network face to face contact
buddy@clarkslegal.comClick here for further details about our next HR Buddies event.  

If, alternatively, you wish to network online with other HR professionals, then using the discussion forum below, is your ideal opportunity to do so.

Please feel free to post new queries or questions, and/or reply to ones already posted. All you have to do is register a few details, then you will be ready to post your thoughts.

You can post a new query by selecting the tab "new thread". To reply to a post, select that post and then choose the "reply" tab.

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  Discussions  Buddy's question time  Bonuses: calcul...
 Bonuses: calculation of holiday pay
 
Kate_Atkinson
99 posts
Joined
1/4/2006

Bonuses: calculation of holiday pay
Posted: 28 Jul 06 4:01 PM
This week buddy was asked: When calculating our workers' pay we include a productivity bonus (should the worker's team exceed its targets) and an attendance bonus (if the worker completes his contractual hours in a given week). Do we have to take these into consideration these when calculating holiday pay?
Kate_Atkinson
99 posts
Joined
1/4/2006

Re: Bonuses: calculation of holiday pay
Posted: 07 Aug 06 10:00 AM

Buddy says: Yes, the EAT confirmed in May Gurney Ltd v Adshead & others that workers whose pay includes these type of bonuses should have them taken into account when calculating holiday pay.

Employer information: The EAT held in Adshead that workers whose pay includes these bonuses are deemed for the purpose of section 221 of the Employment Rights Act 1996 as workers whose pay varies according to the amount of work done.

They concluded that:

  • the productivity bonus was pay that varied with work done and
  • the attendance bonus was essentially a fixed bonus and part of the normal remuneration a worker would receive for working his contractual hours.

Holiday pay in this case should therefore, be calculated in accordance with Regulation 14 of the Working Time Regulations i.e. as an average of the previous 12 weeks' pay including both bonuses.

  Discussions  Buddy's question time  Bonuses: calcul...
 
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