Holiday pay kick off at work

[Notch7]

Do you mean they went bust because they had been failing to pay their workers correctly and owed a lot of money?

Would the same have happened if they had been defrauding their customers, for example selling PPI and were obliged to pay compensation?

Or if they had failed to pay minimum wage and were forced to pay the shortfall? Or committing VAT fraud?

Or if they had been fiddling the electricity meter, or evading tax for a long time?

Lots of sympathy for rogue employers, and for criminals.
It must be tough getting caught.

Typical attitude from somebody that doesn't run a business and doesn't employ people.

What JohnD does not appreciate is that ever increasing legislation reduces incentive for small companies, benefits large companies so reduces competition and increases monopolies.

the mass of leglislation makes it not worth running a company to avoid the hastle.

 

[Ian H]

I get 25 days/year plus bank holidays all at 8 hours.

An example of a day would be set off at 7 to be on site by 8. Work until 4 then home by 5, I'm paid from when I start the van at home the when I turn it off back at home.

So that's an 11 hour day. 8 hours at £10, 2 hours at £15 (figures simplified).

So if I averaged that everyday, £130/day or £650/week.

Holiday pay is £400.

Boss would be unhappy if I did 8 hours and wasn't finishing jobs, I'm happy getting £400 for not even being there.

I could work a Saturday if I wanted, normal time for 4 hours then time & half after that. I never do weekends.

 

[Lower]

Do you mean they went bust because they had been failing to pay their workers correctly and owed a lot of money?

No, this is an interpretation of the employment law in a different way to how it had previously been interpreted. It was never UK law or even custom or practice to pay holiday pay uplifted with an amount of calculated overtime. Companies wrote contracts and offered employment with holiday paid on basic hours and employees accepted employment on that basis. This has come about because of an interpretation of how the European working time directive applies in the UK.

Its not companies taking advantage, its not companies historically underpaying holiday pay. Prior to this ruling, with very few exceptions, all uk companies paid holiday pay the same way which was at basic rate. The goalposts have suddenly been moved and applied retrospectively.

Companies knew what their costs were prior to this ruling and ran their businesses accordingly. Then, all of a sudden, this new rule comes in to play and is applied retrospectively up to 2 years. Companies can't go back to their customers and increase what they charged them up to two years ago to cover the new cost. They just have to cough up and certainly smaller companies are not bottomless pits of money. In some cases it is a lot of money that have to find, money that the company doesn't have and isn't profitable to support.

 

[JP_]

haven't read all the comments, but surely it is in your contract / employees handbook how much holiday pay you receive?

I have only ever received the pay for the standard contracted hours, not for average overtime etc. - overtime is just that, overtime. My understanding is that overtime is a choice, and, you can't do overtime when you're on holiday, so not entitled to it.

But, regardless of what employment law regulations suggest, when you sign a contract, you agree to those working conditions and benefits.

 

[Brigadier]

No, this is an interpretation of the employment law in a different way to how it had previously been interpreted. It was never UK law or even custom or practice to pay holiday pay uplifted with an amount of calculated overtime. Companies wrote contracts and offered employment with holiday paid on basic hours and employees accepted employment on that basis. This has come about because of an interpretation of how the European working time directive applies in the UK.

Its not companies taking advantage, its not companies historically underpaying holiday pay. Prior to this ruling, with very few exceptions, all uk companies paid holiday pay the same way which was at basic rate. The goalposts have suddenly been moved and applied retrospectively.

Companies knew what their costs were prior to this ruling and ran their businesses accordingly. Then, all of a sudden, this new rule comes in to play and is applied retrospectively up to 2 years. Companies can't go back to their customers and increase what they charged them up to two years ago to cover the new cost. They just have to cough up and certainly smaller companies are not bottomless pits of money. In some cases it is a lot of money that have to find, money that the company doesn't have and isn't profitable to support.

Well explained, and well done for not rising to the bait.

 

[SirGalahad]

So are you going to contribute anything, Knobrot?

I thought I did. I'm only trying to help the forums Grammar Police.

Typical attitude from somebody that doesn't run a business and doesn't employ people.

What JohnD does not appreciate is that ever increasing legislation reduces incentive for small companies, benefits large companies so reduces competition and increases monopolies.

the mass of leglislation makes it not worth running a company to avoid the hastle.

Yep. Which is the point I've made countless times. Reducing Corp Tax is not that helpful for smaller businesses, it benefits those who make their money from capital the most. You would prefer something that helps you lower your costs.

 

[Notch7]

Yep. Which is the point I've made countless times. Reducing Corp Tax is not that helpful for smaller businesses, it benefits those who make their money from capital the most. You would prefer something that helps you lower your costs.

Indeed.

Business rates is a huge cost to businesses -it is basically tax by another name, crippling for the retail sector.

Pensions -government has pushed the problem towards business. It cost me £500 just for the pension module from Sage, thats without the extra admin costs of the payroll element. No wonder everybody in construction is CIS even though many work for 1 company full time.

 

[SirGalahad]

Indeed.

Business rates is a huge cost to businesses -it is basically tax by another name, crippling for the retail sector.

Pensions -government has pushed the problem towards business. It cost me £500 just for the pension module from Sage, thats without the extra admin costs of the payroll element. No wonder everybody in construction is CIS even though many work for 1 company full time.

Yep.

There needs to be a wholesale rethink of taxes. The tax system now by design really benefits the MNC's at the expense of the SME's who can't set up offshore for their 'Dutch Sandwich'. The irony is that many of these SME's just become sub-contractors to the larger players who simply play the tax and regulation system which then means these SME's carrying more and more of the burden in terms of costs and risks. Uber is a prime example of this.

Economics is simple but not when it's mixed with politics.

 

[EFLImpudence]

Twas ever thus.

When will everyone realise that's how it works?

Peasants pay taxes to Lords.