Most of the employees are paid on a fixed hourly rate regardless of what hours they work but one employee is on a contract to work 40 hrs and then any extra hours are paid at overtime. He regularly works 40hrs plus 6hrs overtime and I have always calculated his holiday on the average pay for the past 12 weeks (which will include overtime) I have just questioned my actions as I am wondering if we only need to pay him holiday on the basic 40 hrs?
Thank you. I have always applied this method of including the overtime but another member of staff challenged me in this and then I began to question myself. It is so good to have someone to just confirm these things.