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Rolling holiday pay up into wages
03/12/2003 12:29:32
A number of employers cover the statutory minimum holiday entitlement by adding a percentage element of holiday pay into their workers’ hourly or weekly rate of pay. Each worker then receives no pay when they take their leave on the basis that they have already received holiday pay in the rolled-up rate.The Employment Appeals Tribunal considers three schemes to be illegal:Contracts that do not mention holiday payContracts that exclude liability for holiday payContracts where rates are said to include an amount for holiday pay but there is no actual amount specified