Employees after completion of 12 months service
For an employee after completion of 12 months’ service, the calculation of annual holiday pay requires the comparison between ordinary weekly pay and average weekly earnings. The greater amount should be paid to the employee. This calculation needs to occur at the time the employee takes the holiday.
These calculations apply to all employees, including those whose pay has varied over the year or whose work pattern has changed during the year.
If this is being done for an employee who has worked the same hours for the same rate of pay throughout the year, and hasn’t received any bonus or additional payments, the answer is likely to be their ordinary weekly pay. It is important to check that the employee hasn’t had a period of overtime earlier in the year that could affect the average.