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Note: This is the text of the old Act that remains in force until 31st March 2004. From 1st April 2004 leave is governed by the Holidays Act 2003 | |
Section 18 Calculation of holiday pay where work ceases periodically
In Plain English
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This section deals with annual compulsory closedowns. -
If an employee has been employed for less than a year, they are to be paid 6%
of their accumulated gross earnings. -
The date of the annual closedown then becomes their new anniversary date. At the
closedown the following year, they will be entitled to 3 weeks paid holiday. | |
Legislation 18.1 Where it is customary for any employer to allow the whole or any part of
any annual holiday to his workers or to any class of his workers during a period in each year when his premises are closed or the work of those workers is for any reason discontinued, and at the date of commencement
of that period any such worker has not under section 11 of this Act become entitled to an annual holiday, the holiday pay of that worker in respect of that period shall, subject to any agreement made under
section 12.4 of this Act, be calculated in accordance with this section. 18.2 In respect of the period of closure or discontinuance of work
referred to in subsection (1) of this section, the holiday pay of the worker shall be an amount equal to 6 percent of his gross earnings during the time from the date of commencement of his employment up to
the date when the premises are closed or the work is discontinued. 18.3 Notwithstanding subsection (2) of this section, the employer may
deduct from the amount of holiday pay assessed under that subsection all amounts already paid to the worker in accordance with section 17 of this Act in respect of any annual holiday to which he has not become entitled under
section 11 of this Act at the date when the premises are closed or the work is discontinued. 18.4
Subject to subsection (6) of this section, but notwithstanding any other provision in this Act, a worker who receives holiday pay calculated in accordance with this section shall not otherwise be
entitled to any annual holiday in respect of the period of his employment up to the date of the closure or discontinuance of work, or to any remuneration in respect of the period of the closure or discontinuance of work.
18.5 For the purposes of this Act, where a worker receives holiday pay calculated in accordance with this section, the next year of his
employment shall be deemed to commence on the date when the premises are closed or the work is discontinued. 18.6 Nothing in this section shall be deemed to deprive any worker of
any right or benefit to which he is entitled under any other Act [or any employment contract]. 18.7
Where during the employment of any worker to whom this section applies he is unable to work because of sickness or injury, then, for the purposes of this section the term "gross earnings", in relation to
that worker, includes in respect of each complete week of absence through that sickness or injury an amount equal to the amount of ordinary pay that he would have received had he not been absent, reduced
by the amount of sick pay received by him in respect of that week or any part of that week. 18.8 For the purpose of assessing a worker's holiday pay pursuant to
this section, the employer may fix a cut-off date other than the anniversary of the commencement of the worker's employment. Cf. 1944, No. 5, s. 3C; 1974, No. 149, s. 3
In subs. (6) the words in square brackets were substituted for the words ``, award, or agreement'' by s. 11 of the Holidays Amendment Act 1991.
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