Q: We have a staff member who has been on a fixed term for 1 year. This has been extended for another 2 months with annual leave entitlements accruing. (maybe extended again)
We have been paying them 8% as they go up until the end the 1 year.
Can you please advise how we treat and pay this leave going forward.

A: Under Section 28 (Pay as you go) there is a sub section (2)

(2)

If an employee to whom subsection (1)(a)(i) applies is employed by the same employer beyond 12 months on a series of fixed-term agreements of less than 12 months each, the employer and employee may agree that the employee is to be paid in accordance with subsection (1) regardless of the number of agreements.

If there is agreement then 8% can continue to be paid but if no agreement then they would be entitled to 4 weeks of annual holidays and the 8% already paid you could not be recovered.