'Tis the season...to tot up your overtime payments!
Ah, Christmas! ‘Tis the season to be…working?
Most of us are relaxing with a few days off, overindulging in mince pies, excitedly unwrapping presents, and watching Love Actually.
But whilst you’re tucking into your turkey dinner, there’s more than 1 million people in the UK who will be working on Christmas Day according to the Office of National Statistics – that’s 3.4% of all in employment!
Here are our top 3 considerations to make sure you don’t run into any payroll problems when employees work over the Christmas period…
Over 1 in 30 people will be working on Christmas Day.
There are three bank holidays over the Christmas period including Christmas Day, Boxing Day and New Year’s Day. Where any of these days fall on a weekend, the following Monday, and possibly Tuesday will be the replacement bank holiday.
Whilst there are no legal requirements around working and payment over the festive period, some employees may be entitled to extra pay if it is detailed in their employment contract.
The payroll team will need to be informed of the pay rate (for example, standard time or double time) to ensure employees are paid correctly for working over Christmas.
Most employees look forward to taking a well-earned break over the festive period. But Christmas can be a very busy time for many employers, especially those working in the retail or hospitality sectors. Not forgetting, it's also one of the busiest times for payrollers who are pressured to meet early pay deadlines!
To cope with an increase in demand, an employer may offer overtime. Whether an employee is required to work overtime depends on the employment contract. There's also no legal right to pay employees for working extra hours, although the average pay rate mustn't fall below the National Minimum Wage.
All overtime during the Christmas period should be recorded and sent to payroll with the pay rate.
In the run-up to Christmas, another way an employer may look to cover the busy Christmas period is by employing seasonal workers. They can do this by employing them directly or through an agency.
If employed through an agency, the employee’s contract and payroll is the responsibility of the agency.
However, if employed directly, seasonal workers are to be treated the same as permanent staff. They will have the same rights to parental leave and benefits, pensions and other employee benefits, but all on a pro rata basis. To ensure that they get paid, the payroll team will need to set these employees up on their payroll solution.
Seasonal workers will need to ensure that they have completed their new starter checklist and handed it to the payroll team before the cut-off date to ensure that they get paid in time.
Track your employees’ hours worked during the Christmas period and automate the collection and calculation of timesheets using Time & Attendance Software. It'll save you oodles of time and make sure you're not missing any essential hours from your employees' wages this Christmas!
