Holiday pay – updated 2024 guidance for irregular and part year workers

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Earlier this month, the Department for Business and Trade released new guidance on the holiday pay and entitlement reforms from 1 January 2024.

The guidance goes through changes to the Working Time Regulations and covers the meaning of an irregular hours worker and a part-year worker, holiday entitlement for these workers, carry-over of leave and holiday pay calculations.

The guidance sets out examples as to who would be irregular and part-year workers which is useful. It also explains that part-year workers with fixed hours, for example, teaching assistants who only work during term-time, and who are paid only when working, would count as part-year workers. However, workers with an annualised (flat) salary over 12 months would not count as a part-year worker as there are no weeks where such a worker is not receiving pay.

The guidance covers the accrual of statutory holiday entitlement for irregular hours and part-year workers for leave years beginning on or after 1 April 2024, when holiday entitlement will be calculated as 12.07% of actual hours worked in a pay period.

The guidance does say that for irregular hours and part-year workers, for holiday years starting on or after 1 April 2024, employers can choose to use rolled-up holiday pay. It goes on to say that if employers intend to start using rolled-up holiday pay, they should check their workers’ contracts in case this amounts to a variation of contract. Employers should tell their workers if they intend to start using rolled-up holiday pay and for this payment to be clearly marked as a separate item on each payslip. The holiday pay should be paid at the same time as the worker is paid for the work done in each pay period.

Contact our employment law solicitors today

If you have any questions regarding any of the issues raised in this article, please do not hesitate to contact our specialist Employment Law team by using our online enquiry form or by calling 0330 191 5713.


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