Are you paying staff for annual leave based on their contracted hours only?

You need to take into account time worked over their contracted hours when calculating annual leave payments.

Failure to do so can result in massive back payments of monies owed from 2018 onwards. We call this NOPAL (Non-Payment of Average Annual Leave).

We can help.

Our team support by calculating the size and scale of the issue, whilst working to a resolution with your staff and unions. We can also support restructuring contracts to ensure compliance going forward.

Why is overtime included in annual leave?

The law changed in April 2020 to protect workers from financial loss when taking holiday from 2018 onwards.

The rules now state that annual leave payments must be calculated on the average of 52 weeks worked pay data.

This means if a person has a 30 hour contract but works an average of 35 hours a week for a 52 week period, the annual leave payment they receive must be calculated based on the 35 hours worked, rather than their contracted 30 hours.

How does this impact schools?

Where staff are submitting timesheets and are working more hours than they are contracted, schools (employers) are legally required to calculate the holiday payment correctly based on the average of their hours worked over a rolling 52 week period.

This is particularly relevant for schools where, for example, staff may be contracted to only work morning hours but regularly work overtime to cover afternoon hours also.

How can HR & OD Education Solutions help?

We can scope the size and scale of your issue, calculating your liability, as well as communicating with your staff and unions and taking your school / trust / authority through the process.

We have a track record of success with annual leave recalculations, and using your timesheet data, we can calculate your shortfall per staff member between now and the date of the law change.

We also support restructuring contracts to ensure compliance going forward.

The sooner you get on top of the issue, the less you will be liable for in back payments and the easier you can budget for this going forward.

Book a consultation call with us today