Holiday Pay Module

The IRIS Holiday Pay Module allows you to decide how to calculate holiday pay.

In 2014, two employment tribunals, Fulton v Bear Scotland and Lock v British Gas, resulted in two new rulings regarding the calculation of holiday pay. They stated that overtime and commission should be included in the holiday pay calculation.

The rulings have not been written into UK legislation yet. The government has a taskforce in place to interpret the ruling and detail how it should be implemented.

There are several things to consider:

  • There is no clear definition of how to calculate the payments, other than an average of 52 weeks.

  • What constitutes a day or an hour’s holiday pay.

  • How holiday is calculated for monthly-paid individuals.

  • Whether the whole pay period be excluded from the calculation if a statutory payment is included.

The IRIS Holiday Pay Module provides a flexible solution, allowing you to define how the payment should be calculated.

The IRIS Holiday Pay Module will be updated in line with any changes to the law allowing your business to remain compliant.

There are many new terms in use describing the different aspects of Holiday Pay; these are explained in the Glossary of Terms.

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