Kensington Swan
Added: Feb 15, 2012
A number of employers could find that they have miscalculated holiday pay due to confusion over changes to the Holidays Act 2003 introduced in April last year. The Act has always provided that discretionary payments were excluded from the definition of gross earnings for the purposes of annual holiday pay calculations. In 2011, the Act was amended to include a definition of what properly constituted a discretionary payment.
The Act states that discretionary payments are those which the employer is not bound to pay under the employee’s employment agreement.