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Every four years, there’s an extra day on the end of February. It’s called a ‘leap day’, and as one falls this year, it means 2024 is a ‘leap year’. Down to a technicality due to a difference in a solar year and a calendar year, this additional day every four years has the potential to cause a bit of a headache for your clients, especially if it leads to demands for more pay from their workforce. It is an extra day, after all, and with it being on a Thursday this year many will see it as an additional working day. However, the answer isn’t as simple as that. It all depends on their pay structure.
Hourly paid workers
Where an hourly worker is paid weekly, they will not see any actual difference in their pay because the number of days worked in their pay reference period has not changed – a leap day does not mean a seven-day week becomes an eight-day week, nor does it mean that a five-day working week becomes a six-day working week, so for these workers their hours in the week 29th February falls will be unchanged.
However hourly paid workers paid monthly will see an increase because the number of days worked in the pay reference period has changed; they will work for 21 days in February rather than the usual 20 days. Therefore, they are owed an extra day’s pay because they have worked an extra day.
Salaried workers
Salaried workers will not see any difference in pay because they are paid with reference to the year and not the hours worked. However, for workers who are paid at the national living/minimum wage, your clients should run a compliance check to make sure there are no breaches around the leap day.
Pay day
Where pay day is the last day of the month, having a 29th in February means workers will be paid a day later than usual, which could have significant consequences, especially for those on a tight budget. Your clients should decide whether to pay on the 28th or the 29th. Whichever way, this should be confirmed to workers in good time.
Statutory sick pay
For workers who go off sick in the final days of February, when processing payroll the extra day will need to be considered when counting waiting days, which could affect when payment begins.
Notice
Your clients will need to remember to factor in the extra day in February when giving termination notice. Otherwise, it could mean that an individuals employment might end on 1st March when in fact it should be 29th February, giving them an extra day’s pay.
The same applies where employees request annual leave (where notice is required to take it), parental leave (21 days’ notice of the start date of the leave is needed), or paternity leave (to be taken within 56 days of the birth) etc. Failing to recognise the 29th here could mean a request could be denied on the basis correct notice hasn’t been given when it has.
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