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Staff holidays amounting up during Covid

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bev

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Mar 19, 2012
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Hi there,

I was just wondering if anyone could give me some advice please? I have a beauty salon with 3 members of staff, 2 full time and 1 part time. After all the restrictions my staff have taken very little time off, which is completely understandable. I am just panicking at the amount of holidays that will have been accumulated after all of this!! I have 2 members of staff pregnant, so they will both be going on maternity leave from April, I will be down to 1 full time member of staff for possibly a year!! I work in the salon as much as possible too. I am just wondering if I should pay the girls for their holidays missed from last year and start a fresh this year or what to do? Any help would be greatly appreciated.

Thank you.
 

TheDuchess

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I have a contract with my staff that I can specify their leave for up to a week a year. So I did that last year but I was still stressing so I gave them notice that I was amending their contract terms and that I’d need to pay their holiday as its earned each month.

I put it in writing and reminded them that they’d need to put a little money aside for when they wanted to go on holiday as that will be unpaid. I did explain to them that I was anxious that I might not be able to pay them holiday in the future so it was better for me to clear holiday pay and not let it mount up.

It’s really hard to pay wages when you have fewer people in to generate the earnings - and with social distancing it’s even harder. It’s usually better for staff on maternity leave to receive a couple of days holiday pay every month so if you change the arrangement now it may suit them later. Don’t forget that you pay the top up for furloughed staff, so if they are receiving 80% of their usual pay you’ll need to top this up to 100% for their holiday.

Another reason to clear their holiday before April 5th is that it might be more tax efficient for your staff to receive their holiday pay during the relevant tax year.
 

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