Keeping accurate records of the times the employee has been working is vital because the Holidays Act states that if you do not comply with your record keeping obligations, the court may accept the employee's evidence about the leave the employee has taken, or payment they have received.
Section 81 of the Holidays Act 2003 requires you to keep the following Holiday and Leave record for at least 6 years
81. Holiday and leave record —
- the name of the employee:
- the date on which the employee's employment commenced:
- the days on which the employee actually works, if the information is relevant to the calculation of entitlements or payment for entitlements under the Act:
- the employee's current entitlement to annual holidays:
- the date on which the employee last became entitled to annual holidays:
- the employee's current entitlement to sick leave:
- the dates on which any annual holiday, sick leave, or bereavement leave has been taken:
- the amount of payment for any annual holiday, sick leave, or bereavement leave that has been taken:
- the dates of, and payments for, any public holiday on which the employee worked:
- the number of hours that the employee worked on any public holiday:
- the date on which the employee became entitled to any alternative holiday:
- the details of the dates of, and payments for, any public holiday or alternative holiday on which the employee did not work, but for which the employee had an entitlement to holiday pay:
- the cash value of any board or lodgings, as agreed or determined under section 10:
- the details of any payment to which the employee is entitled under section 61(3) (which relates to payment in exchange for an alternative holiday):
- the date of the termination of the employee's employment (if applicable):
- the amount paid to the employee as holiday pay upon the termination of the employee's employment (if applicable):
- any other particulars that may be prescribed.
These Are The Questions Employers Are Expected To Answer
(This is an extract from a letter to an employer from a Labour Inspector) This being the case I will ask you to please provide me with copies of (employee's name) wage, time and holiday records, along with a copy of her employment agreement and any other relevant information regarding the matter that you may possess. Please send copies of these records to the address noted at the foot of this page. Please ensure that the records contain all the relevant entries for the following:
- Exact start (and, if appropriate, finish) date(s) of employment
- Accurate and complete records of the following:
Wages
- Hourly wage rate(s) throughout employment period:
- Specific days and hours worked
- A breakdown of hours into ordinary and overtime
- Gross Pay/PAYE
- Net pay
- Allowances paid, taxable and non-taxable
- Any deduction(s) made, and the reason(s) for same
Holidays
Public:
- Specific dates and hours worked (if any)
- Dates not worked
- Gross pay
- PAYE
- Net pay
- Allowances paid, taxable and non-taxable
Alternative holidays taken
Alternative holidays paid out, if any, including amounts and dates paid Annual:
- Dates holidays taken
- Gross pay for holidays taken
- PAYE
- Net pay for leave taken
- When holiday pay payment(s) were made
- Cumulative running total record of entitlements and leave taken
Calculation of holiday pay due at termination
Sick leave and Bereavement leave:
- Dates leave taken
- Gross pay for leave taken
- PAYE
- Net pay for leave taken
- When sick leave and bereavement payment(s) were made
- Cumulative running total record of entitlements and leave taken
Redundancy provisions (if any), including method of assessment
- Dates/times/amounts of funds disbursed to date
- Proposed payment plan for any sum outstanding.
(Letter cont'd).
Please refer to sections 54 and 65 of the Employment Relations Act 2000 for more information on written employment agreements, plus section 130 of the Employment Relations Act 2000, and sections 81 through 84 of the Holidays Act 2003, for more information regarding wage, time and holiday recordkeeping. I have enclosed a copy of the relevant legislative extracts, for your information.
When responding to this request, you may also wish to include a statement as to how you see the situation.
If you would like to discuss the employee's enquiry directly, you are welcome to do so by contacting me (details below):