We have a pre=school client for whom we prepare payroll.
They have a member of staff on maternity leave, we have run the usual calulcations for the 6 and 33 weeks. However, the question has arisen about their holiday entitlement which, like many such settings, is paid as a 12.1% add-on. We reckon that since the first siz weeks is based o the precededing varegae pay, which already includes 12.1%, then the holiday pay is implicilty included in their SMP for that first period. However, two questions arise:
1. Is that right, or should they still be paying 12.1% of their contracted regular pay?
2. What happens for the following 33 weeks - do they pay 12.1% of the statutory minium, or again base it on the regular pay?
Many thanks in advance (and a Happy New Year, almost!)