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• # 105890
• Tue 10 Mar 2015 01:44 PM

Hi All

Please could anyone assist me with this query.

A staff member is on long term sickness , SSP all paid up to date. Staff has requested for holidays accrued to be paid which HR has agreed to. For example HR has agreed 27 days days holiday should be paid.

I'm not sure if im thinking too much into this , but considering our holiday runs from Apr 1st - 31 Mar and he has been on sickness since 6/3/2014, would you need to establish whether holidays already taken within the same financial year prior to sickness. ( 27 days seems a bit high ).

If 27 days is correct how would you address this? I was thinking to use the daily rate x 27 days or would you need HR to confirm the dates the period covered. Have been told to use the dates, so the holiday pay works out eg £200 more than if I used the daily rate. (still not comfortable using the period in the months to calculate)

Under HMRC guidelines what is the correct way to address this?

regards

R

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• # 105933
• Thu 12 Mar 2015 08:32 PM

Hi Raquel,

I would have thought this more a company policy issue than Hmrc.

It sounds like the 27 days needs double checking with HR. If it is agreed that he is to be paid 27 days, this should be paid in addition to SSP. If someone was salaried, I would use the salary to calculate a daily rate based on the working pattern of the employee. I’d then pay them 27 days at this rate. There could be other policies that employers use to calculate holiday pay though which will result in a slightly different figures, which is why I started by saying it is more a company policy issue.

Hope this helps a bit

Dave

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• # 105941
• Fri 13 Mar 2015 01:52 PM

Hi Raquel

If the employees has been off sick nearly 12months then he would be entitled to at least the statutory 28 days, so the 27 is probably correct. As Dave says a lot depends on company policy as to what they pay, and also whether the SSP is on top or included in the daily rate. Is the employee going to be returning to work. think you need to discuss with HR what has been agreed with the employee and then just pay accordingly. The softward should sort out any tax payable etc, so as long as you pay what the employer has agreed to pay, then i wouldnt worry too much. Just cover your own back, and check before you pay anything.

Kind regards and very best wishes

Elaine 

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• # 105969
• Mon 16 Mar 2015 01:23 PM

hi Dave / Elaine,

Thank you for taking the time to reply.

Have checked this with HR who confirm that 27 days should be processed , HR have provided the dates in which this covers, so I have calculated the pay as if he returned to work but being paid his holiday instead. 

thanks again

R

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