Leap Year Headache for Employers!
Leap Year Headache for Employers! – 28/02/2020
An extra day, but does this mean extra pay?
So, with the leap year upon us, an extra day can cause an unwanted headache for employers. We explain the employers’ obligations of what they should be aware of regarding staff who are working the leap year day. The main cause for concern is whether employees are entitled to pay for the extra day or not.
We have the answer… IT DEPENDS.
It is dependent on whether they are salaried or paid hourly based on the number of hours they work.
A salaried employee will receive a set salary for the year; therefore, an extra working day will not make a difference to their pay. So, the answer is no they do not receive extra payment.
However, in an unlikely scenario where a contract can state that employees do receive additional pay for a leap year. They will receive extra pay in this instance.
Employees who are paid hourly based on the number of hours worked, will have to be paid for the extra day’s work. Regardless of the date or the number of days in the year, these paid hourly employees are entitled to be paid for all the work they do.
It is worth reviewing all employees’ contracts of employment before confirming their wage payments during the leap year, especially for salaried employees.
Paid hourly employees may work shifts, therefore some may be unhappy with having to work an extra shift, while others may be happy of the extra income. However, it is important to communicate to staff well in advance as to gauge who may be more willing and open to working the leap year day.
Avoid the leap year confusion and be prepared!