Holiday pay on price work

Question

my holiday pay gets paid on the basis of £6 per hour 38 hours a week but i work on a price not hours my last 3 years i have earnt £32,000, £42,000 and £35,000 sureley my holiday pay should reflect this. is there any way my boss can do this leagally?

Answer 1

Yes he can. The £6 per hour is the firms BASIC rate for the job without the price work incentive. Your boss is quite within his rights - the time you are on holiday you are not 'producing profit' for the firm, your price work earnings are based on the profit you are producing for the firm.

Answer 2

No he is legally and contractually in the right. others are of a different opionion anad it may be as well to contact ACAS to see if the law in any way modifies the contract

Answer 3

According to the berr.gov.uk site:

For piece workers or workers on commission (hours constant and pay varies)

If you are a worker whose pay varies with the amount of work done (such as with piece work) or when a week’s pay is partly made up of variable bonuses or commission directly related to that week’s output, then a week’s pay is your average hourly rate multiplied by your normal working hours.

To calculate your hourly rate: divide your weekly pay over the previous 12 weeks by the number of hours you worked during the same period (the pay and hours of non-compulsory overtime is excluded). Any week in which you receive no pay is replaced by the week before the 12 weeks when you were paid, to bring the total to 12.

If you are on commission or performance-related bonuses, 12/13 of any quarterly bonus or 12/52 of any annual bonus is included. Only bonuses specifically related to a week’s work should be included; general ‘profit-sharing’ or other such bonuses are not included.

If your contract specifically states that holiday will be paid at £6ph I would contact ACAS for advice, as this may not be enforceable.

Answer 4

If your contract says "£6 per hour 38 hours" then that is what you are legally entitled to.

If you're not happy then renegotiiate the contract.