Incremental Holiday System – Increasing holiday entitlement
Increasing holiday entitlement for long serving employees is one of the methods employers use to reward employees for their commitment to the company.
This week a client wanted to implement an incremental holiday system based on employee length of service. This being the longer serving employees who had up to 10 years plus service with the company.
Employers are perfectly entitled to implement such schemes however they must fully observe the provision of the Equality Act 2010 to avoid any claims of direct/indirect claims of discrimination.
How can rewarding for someone for their long service be discriminatory, you might well ask?
Well, when we speak about increasing holiday entitlement for long service, the age of the person comes into play because the longer the service the more likely it is that they will be older. I can hear the penny dropping now!
This is not to say that an employer cannot reward someone with a benefit past five years’ service but what the law says in these circumstances is that the needs of the business in implementing this must outweigh the discriminatory effect. It can be to encourage loyalty or reward higher levels of experience.
This can apply to any benefits that are awarded through length of service not just holiday. If you would like more information, make the most of free ChamberHR advice line by calling 01455 852037.
