Confirmation that the Holidays Act (2003) is to be reviewed is excellent news for employers, according to the The Employers and Manufacturer’s Association (EMA) which believes the Act needs to be fixed as it is not fit for purpose for the modern work environment.
“We want an Act that is easier to comply with and simpler for employers to administer and we need urgency on this,” says EMA chief executive, Kim Campbell.
“People work all sorts of combinations of hours and days, which makes it difficult to calculate leave based on an average day or an average week. No longer does everyone work from 9am to 5pm, Monday to Friday and we need an Act that accommodates modern working patterns,” says Mr Campbell.
The Holidays Act requires holiday pay to be calculated on the basis of:
– Ordinary weekly earnings, or
– The average of the past four weeks’ pay, or
– The 52 week average of gross annual earnings
The payment is the greater amount of the above.
“Our members want to do the right thing, but the Act in its current format makes it complex and onerous. We look forward to ensuring the concerns of business are raised in this matter.”