How long can the company pay for the vacation?

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How long can the company pay for the vacation?

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Although vacation pay is the right of every UK residents worker guaranteed by law, there may be doubts about even when the company can afford the vacation. That is, it is common that some professionals do not know how this should work. payment, especially in relation to the period in which it should happen.

The rules are not difficult to understand, but it is worth mentioning that it is always important to keep up to date, since, from time to time, some details can be changed. These changes can happen to address special situations, such as the Covid-19 pandemic.

So, in this article you will check:

  • How do vacation rules work ?;
  • How long can the company pay for the vacation ?;
  • What has changed with the Labor Reform ?;
  • And during the pandemic?
  • Is it allowed to sell the holidays ?;
  • How to calculate the employee’s vacation?

Good reading!

How do vacation rules work?

Holidays are a benefit guaranteed by the rules of the Workers law consolidation (CLT). According to article 129 of the CLT, every year of full work, every professional has the right to take a vacation for 30 days.

Also according to the rules, these days of rest are paid, that is, the worker earns being paid as if he were working. This value is also complemented by the so-called vacation increase.

It is worth mentioning that vacations should be an exclusive moment for the employee to rest in relation to their work activities. Therefore, during the time off, no interruption should be made by the company.

If the employee has unjustified absences during that year of work, they must be deducted from the total vacation payment.

How long can the company pay for the vacation?

To answer the question of how long the company can pay for vacations, it is simple: according to article 130 of the CLT, employers must, obligatorily, grant the employee vacations within 12 months after the acquisition of the right.

In practical terms, this means that after the expiry date of work leave, the company has 12 months to pay them.

If the company exceeds this period without regularizing the employee’s vacation, it is obliged to pay double to the professional. In this case, the employee must take the same 30 days of vacation, but receive twice the amount owed by the company.

It is also important to know that, just as the vacation period cannot be delayed. As a result, the employee cannot go on vacation until he has completed 12 months on the contract since his last vacation.

If the company adopts the collective vacation scheme, this last rule can be changed.

What has changed with the Labor Reform?

With the approval of Labor Reform, the biggest change in vacation rules is that companies can now split the employee’s vacation period into more periods. Before the reform, the company was obliged to grant employees 30 days of vacation, which could be divided up to two times.

Now, the employee does not need to take 30 days off directly. According to Article 134, holidays can be divided into up to three periods. Thus, employer and worker can enter into an agreement that is good for both parties.

It is also a rule that, in this division, at least one of the periods cannot contain less than 14 days off. The other periods also cannot have less than 5 days off for the worker.

In one example, the employee could take 15 days of vacation, then another 10 days and again another 5 days off.

And during the pandemic?

In relation to the Covid-19 pandemic, the federal government decided to relax some labor rules to facilitate the maintenance of the accounts of companies that are suffering from the economic consequences of the crisis.

Thus, on March 22, 2021, the Provisional Measure 927/20, which modifies some points of the CLT.

In relation to workers’ vacations, the main changes are:

  • Companies do not need to wait for the employee to have worked 12 months to grant the vacation. The clearance can be applied even if the period of the original rule has not been fulfilled.
  • At this time, companies can pay the mandatory vacation das after the days off are granted. This payment can be made no later than the payment date for the thirteenth payment.

It is important to note that these changes are only valid for the pandemic period.

Is it allowed to sell the holidays?

It is common to hear about “selling the holidays”, a practice in which the employee makes a kind of agreement with the company in which he converts part of his days off into money. This practice is allowed, however, it also has rules to be followed.

According to the CLT, the worker can only sell ⅓ (one third) of his vacation. This is the equivalent of 10 days. Selling more days than that is not allowed by law. This sale is called a cash bonus.

If the employee chooses to sell a third of his vacation, the payment of this allowance must be made up to two days before the start of the vacation.

How to calculate the employee’s vacation?

Knowing how long the company can pay for the vacation is as important as understanding how the employee’s vacation is calculated. This account is very simple, just count the professional’s salary based on the days of rest to be taken, and the addition of the de vacation allowance.

After reaching a value, it is necessary to deduct the EHIC and the Income Tax, according to the table of values. The final result is the amount to be received by the worker.

If the employee receives additional payments, such as overtime or additional dangerousness, for example, the final value must be added to them.

The rules for holiday pay are not complicated, but they need attention to detail to ensure that labor laws are enforced correctly.

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Conclusion

HR Consultant UK can help if you have any questions about How long can the company pay for the vacation?
. Our HR consultant in London can assist you if you live in London. Suppose you live further afield thats not an issue! Visit our HR Consultants Near Me page to find the best consultancy nearest to you.
See you next time!

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