Q: We wish to seek advice on holiday pay. Is it possible to pay employees the 8% Pay As You Go for those who work regular hours to avoid calculating the AWE and OWE rates? We would still allow them to take their entitled 4 weeks’ annual holidays each year, however this will be paid at the ordinary hourly rate for the month (we pay on a monthly cycle). Should this be a possibility, are there any factors that we need to consider before doing so?

A: When you paid for leave to be taken you are paying a leave rate not a salary or wage rate (they are two different things).  But up to what works best for payroll, this is an overpayment so the Wages Protection Act applies.