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An employee’s time on parental leave is included as continuous service and taking parental leave does not affect entitlement to annual holidays. Employees who take parental leave will still become entitled to a minimum of four weeks of annual holidays on the anniversary of their employment start date.

However payment for annual holidays that an employee becomes entitled to:

• during parental leave, or
• during a period of preference after parental leave, or
• in the 12 months after the employee returns to work after parental leave,

is calculated using the employee’s average weekly earnings ONLY for the 12 months immediately before the end of the last pay period before the annual holidays are taken (or paid out).   This could mean very little value paid for the leave taken.

We cover this topic and many more in our Payroll Essentials Training Course.      If you are involved in payroll, either by administering payroll, managing payroll, or a business owner emplioying staff, this is essential training to ensure you are paying the team correctly and understand your obligations as a employer.

Spaces are limited, so book your spot out now.