Our employees work a 40 hour week but also receive a set performance bonus each week if they meet set targets. Should their holiday pay be based on pay for 40 hours per week or should it also include the bonus?Posted in : First Tuesday Q&A NI on 6 August 2013
Where employees have normal working hours (40 hours as in this case) but their pay varies according to the amount of work done, they are entitled to holiday pay based on their average pay during those normal working hours over the previous 12 working weeks.
Where pay is related to output (to meeting targets) and that output is connected to performance, pay varies with the amount of work done. In this case, putting this another way, the performance bonus appears to be an essential element of the remuneration you need to pay them once they have worked their normal 40 working hours and met the
Already a subscriber?
Click here to login and access the full article.Log in now to read the full article
Don't miss out, start your free trial today!
Are you fully aware of the benefits of Legal-Island's Employment Law Update Service? We help hundreds of people like you understand how the latest changes in employment law impact on your business.
Help understand the ramifications of each important case from NI, GB and Europe
24/7 access to all the content in the Legal Island Vault for research case law and HR issues
Ensure your organisation’s policies and procedures are fully compliant with NI law
Receive free preliminary advice on workplace issues from the employment team at Worthingtons Solicitors
Back to Q&A's This article is correct at 02/09/2015
The information in this article is provided as part of Legal-Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article.