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Holiday pay over Christmas

Published 01 Dec 2014

Relevant Daily Pay

"Relevant daily pay" is used to calculate the employee’s pay entitlements for public holidays, alternative holidays, sick leave and bereavement leave.

The law requires the employer to pay what the Employee would have received had the Employee worked on the day concerned, including commission and productivity based pay and payments for overtime if they would have been received on the day. (Please note that all Employer contributions to a Superannuation scheme are excluded.)

If it is not possible or practicable to determine relevant daily pay, or if the employee’s daily pay varies within the pay period, the employer may use the "average daily pay".

Average Daily Pay

Average Daily Pay is defined as gross earnings for previous 52 weeks divided by the number of days for which the employee was paid during that period.

For further information on this subject please see the "Annual Holidays and Leave" ebook which incorporates the latest changes to Employment Law including "Relevant Daily Pay".

Employers Support Package members this is available to download in the Library section of the Dashboard in the Employers Toolbox.