Holiday Pay - The tip of the iceberg31 March 2016
The recent disclosure of holiday pay irregularities in Police and more recently MBIE are no surprise and probably the tip of the iceberg. The Holidays Act 2003 is too complicated, but the real issue is that many payroll systems were not designed to cope with the intricacies of the current legislation. We have seen many situations where complicated "work arounds" are required to get even close to the correct answer. Underpayments are not the only issue for employers as in many cases employees are being overpaid, so it's a lose-lose situation for many employers. Watch this space.