3 min read | 3 September, 2020 By Laura Sands
Working Time Regulations (sometimes abbreviated to WTR) and holiday allowances can prove confusing. Predictably, this confusion results in several mistakes that happen time and time again.
Unfortunately, these mistakes can cost the businesses that make them. Unhappy employees, high staff turnover and, in some cases, legal action are all risks for businesses that get working time regulations wrong.
In this post we uncover the key facts you need to know and details of what you need to avoid.
The Working Time Regulations 1998 put a limit on the number of hours that workers can work each week.
The basic provisions of the Working Time Regulations state that employees are:
The Regulations apply to all part-time and full-time workers, including most agency workers and freelancers. However, there are exceptions.
The UK allows workers to opt out of the 48-hour working week limit. However, this does not mean they are opting out of the whole regulation.
They are simply relinquishing their right to work no more than 48 hours in a week. They are still entitled to rest breaks and holidays.
Calculating holiday entitlement for workers who work irregular hours can be difficult. Be confident in the holiday allowance you give part time employees and staff on zero-hour contracts by using a holiday calculator.
Add the hours or days your employee works to the calculator and you’ll have an accurate holiday entitlement in just a few clicks.
No matter why an employee is leaving your business, they are entitled to holiday pay accrued to their last day. This is the case even if you dismiss them.
Make sure you pay them accurately by using a holiday calculator adjusted to take account of their leaving date.
It’s easy to forget that employees also accrue holiday pay for any overtime they work. Stay on track of extra hours that your employees work by using cloud-based HR software to record additional hours or holiday accruals in a central location.
The regulations state that all employees should receive 5.6-weeks holiday a year. We all know those employees who never manage their time and fail to take holidays. How can small businesses protect themselves from having to pay that out?
Ensure you have a policy and procedure for managing holidays which should include
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