So where someone is employed on a fixed term period of say six months and they would only be entitled to 8% of gross earnings as a final holiday pay calculation, then the employer can pay out the holiday pay as employment progresses through the six months. In this case if the employer then decided to continue to employ the person beyond twelve months the employee becomes entitled to four weeks holidays but the money already paid can be deducted from what the employer would otherwise owe the employee when they actually took the holidays.
There are strict provisions about what constitutes a valid fixed term agreement. Get advice before you do this.
Secondly, where the employee works for the employer on a basis that is so intermittent or irregular that it is impracticable for the employer to provide the employee with 4 weeks annual leave as contemplated by the Act ( In other words where the employee is a “casual” employee)
A casual employee is not someone who, for example, works every weekend for a similar number of hours in say a restaurant, even if they are called “casual”. In my view they are really a part-time employee. On the other hand a school kid that is only called in to work if no one else is available and has no expectation of any work is a ‘casual” and can be paid holiday pay as they go . The reason this is so important to get right is that if the employer pays the holiday pay wrongly in each pay packet the employee is entitled to claim holiday pay despite them being paid the extra 8% throughout the year.
The employer ends up having to pay twice.
