Employee SMP ends next month and she is wanting take the accrued 28.5 days holiday pay before she returns to work full time. We usually pay holiday pay on the average pay over the last 12 weeks as hours are variable. Do I calculate her holiday pay rate based on the hours she last worked which was 9 months ago or base the pay on the SMP she has received. I was going for the later but she believes she should be paid on the hours she last worked.
Any suggestions as the web sites seem a little vague about the actual amount to be paid.
I would have thought it would be calculated on her normal working hours rather than statutory pay. I think anything else could be construed as some kind of discrimination.
Pretty sure Rob's right there. As it was accrued before the SMP started, the holiday pay is based on the 12 week average prior to SMP. As you say, there's a major hint at this in the second to last paragraph here :