As we embrace the rare occurrence of a leap year in 2024, the question of entitlement to an extra day’s pay arises. Despite the additional day, the legal perspective on compensation varies depending on the nature of employment.
For salaried employees, the fixed nature of their salary on a yearly basis means that they may not be entitled to extra pay for the additional day in a Leap Year. However, employers should exercise caution, especially if a salaried worker earns close to the National Minimum Wage (NMW). It is crucial for employers to ensure that the extra day of work does not bring their earnings below the NMW when averaged against the days worked. Adhering to the NMW Regulations is essential to avoid potential fines for non-compliance.
On the other hand, hourly paid employees, compensated for the actual hours worked, should rightfully receive an extra day’s pay if they work on the 29th February. Conversely, if they do not work on the additional day, they will not be entitled to extra pay.
Understanding the intricacies of pay entitlement during a Leap Year is essential for both employers and employees to ensure fair compensation practices and compliance with legal regulations.
