Holiday Pay
The pay an employee receives while taking their entitled annual leave.
Holiday pay is the remuneration an employee receives for periods of annual leave, ensuring they are not financially worse off for taking the rest they are entitled to.
Calculating it correctly can be complex where pay varies — for example, when someone regularly works overtime, earns commission or has irregular hours — as these elements may need to be included.
Getting holiday pay right is both a compliance issue and a matter of fairness, and errors can accumulate into significant liabilities.
