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A controversial area has come to light, following recent media coverage of less than best practice arrangements by some employers in terms of pay and holiday. According to research by the Chartered Institute for Personnel and Development (CIPD) and law firm Lewis Silkin, most people unsurprisingly view paid holiday as most definitely a right – with 91% of respondents in favour of paid holiday laws as a necessary area of employment law.

However belief and practice do not always match up. Hundreds of thousands of people are missing out on the 28 days paid holiday to which all full-time employees are entitled either because they are unaware of the law or because of “sharp practice” by their employers, according to Citizens Advice. This problem appears to be particularly acute across the so-called ‘gig economy’ but others also suffer who are working flexibly or part-time for companies that reduce holiday entitlement by “manipulating” the law, it said.

In addition, it was found that 87% of respondents also view national minimum wage regulations an important part of employment law. Other findings include:

  • 88% of respondents view equal pay laws as necessary and 82% believe parental rights at work is a necessary aspect of employment law.
  • 44% believe there is a lack of resources which is a barrier to implementing employment law, followed by too much legislation (34%), and a lack of awareness of legislative changes (31%).
  • 17% think there should be legislative changes around employment status and the gig economy.

The gig economy and the drawbacks for the gig workers has been hot news for a while and reform is looking likely. Ensuring that your firm is in line with best practice across the board on employment law is a key way to underpin employee loyalty and retention.

Shorts' payroll department is able to help with any queries on the payment of paid holiday entlement or any other payroll related enquiry.  Please contact a member of the team for more advice.

author

Jo Grant

Jo is the Senior Marketing Manager at Shorts Chartered Accountants.

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