New analysis by the Labour Party has revealed that key workers
including care workers, haulage drivers and police officers would
lose out on hundreds of pounds a year under plans being
considered by Government to change how holiday pay is calculated.
Under the current rules, workers are entitled to a week’s pay for
each week of statutory leave that they take, and employers have
to include regular overtime in how a week’s pay is calculated.
For example, if your pay is set at £250 a week but in practice
you usually earn £300 a week due to regular overtime hours, the
higher figure should be used to calculate your holiday pay.
But it has now been revealed that the Government is reviewing
whether to scrap this regulation, which would mean the pay
workers are entitled to while on holiday would be lower –
calculated from a base hourly rate, without overtime.
Analysis by Labour can reveal that removing overtime from
calculations of holiday pay would mean:
- The average full-time care worker would lose out on £239.60 a
year
- The average full-time police officer would lose out on £308 a
year
- The average full-time driver of large goods vehicles would
lose out on £413.60 a year
- The average full-time worker in food and drink processing
would lose out on £500 a year
- The average full-time security guard would lose out on £312 a
year
Labour will force a vote in the House of Commons on Monday
calling on the Government to rule out watering down employment
protection and to specifically confirm there are no plans to
change the rules holiday pay entitlements, the 48-hour working
week, or legal rest breaks.
, Labour's Shadow Minister for Business and
Consumers, said:
“Once again the Government is exposing its real priorities by
putting the needs of workers and their families to the back of
the queue.
“Ministers are already freezing key workers’ pay, cutting
Universal Credit, and cutting corners on free school meals. Now
they’re considering changes which would leave many key workers
hundreds of pounds out of pocket and risk the financial security
of families. And all in the middle of a pandemic and economic
crisis.
“It’s a disgrace this Government would clap key workers on the
front step and try and take away their rights and pay via the
backdoor. Conservative MPs have a chance to stand up for key
workers and protect their hard-earned holiday pay. They must take
it.”
Ends
Notes to Editors
Full analysis:
- The average full-time care worker earns £59.90 a week in
overtime pay. UK workers are eligible for paid leave based on
overtime pay for the first 20 of 28 paid days off. This means the
average full-time care worker would lose out on £239.60 a year if
overtime was removed from calculations of holiday pay.
- The average full-time security guard earns £78 a week in
overtime pay. This means the average full-time security guard
would lose out on £312 if overtime was removed from the
calculation of holiday pay.
- The average full-time police officer earns £77 a week in
overtime pay. This means the average full-time police officer
would lose out on £308 if overtime was removed from calculations
of holiday pay.
- The average full-time driver of large goods vehicles earns
£103.40 a week in overtime pay. This means the average full-time
driver of large goods vehicles would lose out on £413.60 a year
if overtime was removed from the calculation of holiday pay.
- The average full-time worker in food and drink processing
earns £125 a week in overtime pay. This means the average
full-time worker in food and drink processing would lose out on
£500 if overtime was removed from holiday pay calculation.
- “If you regularly get paid overtime, commission or bonuses,
your employer must include these payments in at least 4 weeks of
your paid holiday.”
https://www.acas.org.uk/checking-holiday-entitlement/calculating-holiday-pay
