With Saturday being 29th February, you may be wondering what the implications are in relation to how your staff should be paid.
Whilst many organisations shall carry on as normal, others may be wondering whether they should be paying their employees extra for the additional day’s work.
An employee’s pay entitlements on 29th February 2020 will depend upon whether they are salaried or receive pay according to the hours they work. Employees who receive the same basic pay every month are not entitled to any extra pay despite potentially working on this additional day. This is because, as salaried workers, they are paid a set salary for the year and this extra day will already have been factored in.
The only time this may change is if there is a term explicitly providing additional pay during a leap year within their contract. Although this is likely to be rare, in this situation organisations will need to honour the terms of the contract and provide pay as specified. Organisations should also check if the extra day does not send staff pay below the national minimum on average, which is currently £8.21 per hour for all workers aged 25 and over.
The situation does differ slightly if the individuals concerned are paid according to the hours they work or the amount of work they do. In this situation, they will be entitled to be paid for all of the time worked, which could mean they receive an additional amount if the extra day means they have worked more hours than usual. For example, persons who work irregular shifts and are asked to work on 29th February may end up coming out with more money overall in February.
As the leap year day does fall at a weekend this year, some organisations may not have to consider this issue. Nevertheless, for those that do, it is important that they are aware of any additional expectations placed upon them.
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