Moving from fixed-term to permanent employment with the same employer
If an employee enters into a permanent working arrangement, the payment of the additional 8% annual holiday pay in the employee’s regular pay must cease.
The employee will then become entitled to four weeks’ annual holidays one year after the final fixed-term period started. Because the employer has already paid the additional 8% annual holiday pay during the final fixed-term period of employment, the pay for annual holidays is reduced by the amount of holiday pay already paid at 8%. The Employment Agreement should be updated as required.
The Employment Agreement Builder can help put together a draft employment agreement.
