Management Information Sheet
Rolled up Holiday Pay
This communication is to advise you of changes being made to the holiday pay arrangements for individuals in receipt of rolled up holiday pay rates. Due to changes in legislation it is no longer lawful for individuals to receive holiday pay in advance (known as rolled up holiday pay). Instead, with effect from the 1st September 2009 individuals will accrue and receive paid holiday in line with the annual leave policy. This is an important change to ensure that employees are able to take appropriate breaks from work and receive payment for holiday "earnt" at the time of the break.
What's the issue?
Historically it has been difficult to administer annual leave for employees who work ad hoc hours. The solution has been to pay an element as part of the hourly rate known as 'rolled up holiday pay'. Due to changes in employment legislation Norfolk County Council are no longer able to do this. Pay slips should only show the basic hourly rate for hours worked and payment for time actually taken as holiday rather than include holiday pay in the overall rate, which is the current position.
Who does this impact?
This change will apply to all employees in receipt of 'rolled up holiday pay' within their hourly rate. This rate is usually paid to employees on relief and casual arrangements, sessional workers and typically will be for employees who work on an ad hoc basis.
What does this change mean?
From September 2009 individuals will no longer receive holiday pay in advance, rolled up into their hourly rate. Annual leave should be taken and paid in accordance with the annual leave policy and pay slips will show hourly pay and any claimed holiday pay separately.
Currently payslips show one rate of pay. This is made up of an hourly rate and includes an amount for holiday pay paid in advance rather than for time taken. For example, a rate of £7.16 would be made up of an hourly rate of £6.39 per hour plus a rate of £0.77 per hour worked of rolled up holiday pay. However, we appreciate that the majority of staff will not want the pay they currently receive affected and will take the leave at the end of each period of work in which case they will be paid for the annual leave at the same time.
In default of any counter-instruction on the claim form the Employee Services Centre will assume annual leave accrued is being taken at the end of each period of work and will arrange payment for that leave at the same time as payment for the work undertaken. In this situation the amount of overall pay received will be unchanged.
After the Change
Individual's pay slips will show the rate for their hourly rate of pay and a separate rate for any holiday pay being paid for in that pay period.
Annual leave will be accrued and taken as time off and paid in accordance with the annual leave policy.
In order for employees to retain their regular / expected pay for each pay period, individuals could choose to take their annual leave each month based on accrued leave for that month. They would then receive pay for hours worked and for holiday taken, which should equal the same as they currently receive in 'rolled up' pay each month.
In default of any counter-instruction on the claim form the Employee Services Centre will assume annual leave accrued is being taken at the end of each period of work and will arrange payment for that leave at the same time as payment for the work undertaken. In this situation the amount of overall pay received will be unchanged. If an individual chooses to have your holiday pay paid at a later date they must indicate this on their salary claim form. It will then be their responsibility to submit a request for payment via the claim form at a later date.
Individuals should not be disadvantaged by the change and it is likely that individuals will choose to take their annual leave on a monthly weekly basis to maintain their expected monthly pay. However an employee who works 37 hours per week cannot also receive holiday pay for the same period. The principle is that the payment for time taken as holiday must allow the employee the opportunity to have a break from work.
How will holiday be calculated and recorded?
Holiday will accrue in accordance with the Working Time Directive, which increased to 28 days per year or 5.6 working weeks with effect from 1 April 2009. This includes bank holidays and equates to approximately 72 minutes for every 10 hours worked.
For casual staff Headteachers will need to record the number of hours worked and the number of hour's holiday entitlement accrued if they decide to take their entitlement at a later date. It is anticipated that casual employees are likely to wish for their accrued holiday to be paid at the end of each piece of work that they do. Timesheets will be amended to allow employees to determine if they wish their holiday pay to be paid at the same time as payment is made for the hours worked. However, Headteachers must ensure that individuals who opt to do this have a break from work whilst they are in receipt of holiday pay.
What needs to happen?
Headteachers need to:
Individuals need to:
Where do I go for further information?
For further information, please refer to the Norfolk Schools Website.
If you have any other queries please contact your Employee Support Assistant.
What's the issue?
Historically it has been difficult to administer annual leave for employees who work ad hoc hours. The solution has been to pay an element as part of the hourly rate known as 'rolled up holiday pay'. Due to changes in employment legislation Norfolk County Council are no longer able to do this. Pay slips should only show the basic hourly rate for hours worked and payment for time actually taken as holiday rather than include holiday pay in the overall rate, which is the current position.
Who does this impact?
This change will apply to all employees in receipt of 'rolled up holiday pay' within their hourly rate. This rate is usually paid to employees on relief and casual arrangements, sessional workers and typically will be for employees who work on an ad hoc basis.
What does this change mean?
From September 2009 individuals will no longer receive holiday pay in advance, rolled up into their hourly rate. Annual leave should be taken and paid in accordance with the annual leave policy and pay slips will show hourly pay and any claimed holiday pay separately.
Currently payslips show one rate of pay. This is made up of an hourly rate and includes an amount for holiday pay paid in advance rather than for time taken. For example, a rate of £7.16 would be made up of an hourly rate of £6.39 per hour plus a rate of £0.77 per hour worked of rolled up holiday pay. However, we appreciate that the majority of staff will not want the pay they currently receive affected and will take the leave at the end of each period of work in which case they will be paid for the annual leave at the same time.
In default of any counter-instruction on the claim form the Employee Services Centre will assume annual leave accrued is being taken at the end of each period of work and will arrange payment for that leave at the same time as payment for the work undertaken. In this situation the amount of overall pay received will be unchanged.
After the Change
Individual's pay slips will show the rate for their hourly rate of pay and a separate rate for any holiday pay being paid for in that pay period.
Annual leave will be accrued and taken as time off and paid in accordance with the annual leave policy.
In order for employees to retain their regular / expected pay for each pay period, individuals could choose to take their annual leave each month based on accrued leave for that month. They would then receive pay for hours worked and for holiday taken, which should equal the same as they currently receive in 'rolled up' pay each month.
In default of any counter-instruction on the claim form the Employee Services Centre will assume annual leave accrued is being taken at the end of each period of work and will arrange payment for that leave at the same time as payment for the work undertaken. In this situation the amount of overall pay received will be unchanged. If an individual chooses to have your holiday pay paid at a later date they must indicate this on their salary claim form. It will then be their responsibility to submit a request for payment via the claim form at a later date.
Individuals should not be disadvantaged by the change and it is likely that individuals will choose to take their annual leave on a monthly weekly basis to maintain their expected monthly pay. However an employee who works 37 hours per week cannot also receive holiday pay for the same period. The principle is that the payment for time taken as holiday must allow the employee the opportunity to have a break from work.
How will holiday be calculated and recorded?
Holiday will accrue in accordance with the Working Time Directive, which increased to 28 days per year or 5.6 working weeks with effect from 1 April 2009. This includes bank holidays and equates to approximately 72 minutes for every 10 hours worked.
For casual staff Headteachers will need to record the number of hours worked and the number of hour's holiday entitlement accrued if they decide to take their entitlement at a later date. It is anticipated that casual employees are likely to wish for their accrued holiday to be paid at the end of each piece of work that they do. Timesheets will be amended to allow employees to determine if they wish their holiday pay to be paid at the same time as payment is made for the hours worked. However, Headteachers must ensure that individuals who opt to do this have a break from work whilst they are in receipt of holiday pay.
What needs to happen?
Headteachers need to:
| Ensure that all individuals in receipt of a rolled up holiday pay rate are made aware of this change. Which will involve schools sending correspondence to the individuals, a template is available for you to use. | |
| Record individual's hours and the annual leave entitlement accrued if not taken at the time of the claim. A spreadsheet has been developed to enable you to do this. | |
| Agree with individuals when they wish to take holiday and implement arrangements for time off in accordance with the annual leave policy | |
| Ensure that individuals are taking the appropriate breaks from work | |
| Ensure you know if your casual staff are working elsewhere and if so, discuss with them the need to manage their time to be within legal limits (48hrs per week) | |
| Ensure that any casual staff who are also working elsewhere for Norfolk County Council are not receiving holiday pay from the other area(s) of work whilst they are working for you as this clearly contravenes the health and safety imperative that individuals are taking paid breaks from their work. |
Individuals need to:
| Ensure their Headteachers keeps an accurate record of the hours worked and understand the holiday entitlement accrued. | |
| Ensure they agree any holiday arrangements with their Headteacher in line with the annual leave policy available on People Net. | |
| Tell their Headteacher if they work elsewhere, particularly if this is with another area of Norfolk County Council | |
| Manage their working time within legal limits | |
| Understand that holiday entitlement accrues on a maximum of 37 hours worked each week, irrespective of where these hours are worked within Norfolk County Council | |
| Submit claims for the payment of annual leave if they decide to accrue holiday. |
Where do I go for further information?
For further information, please refer to the Norfolk Schools Website.
If you have any other queries please contact your Employee Support Assistant.