Extra day, extra pay? Leap year HR explainer

The earth will take 366 days to orbit the sun this year. For many, this is just an occasional curiosity. If you’re running a business, though, that extra day can lead to some head-scratching questions from your staff.

To avoid any leap year confusion, we look at the two most common brainteasers you may face.

Does my staff get an extra day’s pay?

Some employees might raise this question, so it’s important to know your rights as an employer.

Like all legal questions, the answer is, “it depends.” If your employees are paid hourly based on the number of hours worked, you’ll need to ensure they’re paid for the extra day’s work.

If your employees are salaried staff, they will not be entitled to get any extra pay subject to the terms of your employment contract. In the event that the contract states employees are paid more for working a leap day, you’ll need to comply with the terms of the contract.

So, it’s worth checking the employment contract before confirming your payroll.

Don’t forget the national minimum wage rate!

The biggest risk you face from this year’s extra day’s work is the possibility that your employees’ hourly rate of pay will dip below the national minimum wage.

The national minimum wage increased to €12.70 on January 1st (for those aged 20 and over) and is calculated based on the number of hours worked and age range of the employee.

If salaried employees are close to minimum wage, make sure to double-check that their extra hours in February don’t bring their hourly rate below the legal minimum.

Need our help?

If you would like further complimentary advice on this or any other HR issue from an expert, our advisors are ready to take your call any time day or night

Call us on 1800 719 249 or request a callback here.