Holiday payWhat it means, in plain English
Holiday pay is the pay a worker receives while taking annual leave, and in the UK it must reflect normal remuneration rather than just basic salary. For staff with variable hours or pay, employers use a 52-week reference period of average earnings, and for irregular-hours and part-year workers leave may be accrued at 12.07 percent of hours worked with rolled-up holiday pay permitted for those groups. Getting this calculation wrong is one of the most common payroll errors in shift-based businesses.