(Solution) CIPD Avado AC 4.1 (Email 8) Explain the major statutory rights in leave and working time

Solution

Email 8: 4.1 Explanation of Holiday Pay for Nurse Bank Staff

I would be glad to provide information about the various regulations concerning payment for bank holidays for the nurses. This is relevant as they are frequently used on a casual basis to fill shifts in a casual employment contract while it is imperative to provide accurate holiday pay calculations and adhere to the law.

Workers’ Rights to Holiday Pay

In accordance to the Working Time Regulations 1998, workers especially have the right to be allowed 5.6 weeks of annual leave annually including the payment of such leave. This is irrespective of whether they are entire time, part time or casual employment basis. To your nurse bank staff, this means they need to be paid for their holidays on top of their hourly or shift rates.

Holiday Pay Calculation

According the law, the pay during the holiday should bear the worker’s normal wages, which means that they should be paid their wages. In the bank, the calculation of holiday pay must consider staff especially those who have flexible shift timetables.

Rolled-Up Holiday Pay: This practice of including the holiday pay in the hourly rate or salary or paying it periodically is not good for human resources. Employees are also required to have there holiday pay calculated and paid separately from their normal pay at 12.07% (‌Access People HR, 2024). The practice known as rolled-up holiday pay has been deemed unlawful because workers cannot be sure they are receiving the amount they are owed when they are off work temporarily.

      Average Pay Calculation: For employees whose remuneration is not fixed, the holiday pay should be based on the average weekly pay during a reference period, which should be the preceding 12 weeks. This way the holiday pay is accurate to the differences in hours worked and money earned, thus it is fair. For instance, if a nurse works a number of shift, or overtime during a particular period, such amount must be catered for in the computation of the holiday pay.

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