UK: Holiday entitlement and pay: New guidance
The new guidance sets out how holiday pay should be calculated for irregular hours and part-year workers, as well as other holiday pay reforms, the majority of which apply from leave years beginning on or after 1 April 2024 although some apply from 1 January 2024.
In addition to setting out the definition of “irregular hours worker” and “part-year worker,” the guidance includes:
- Holiday entitlement calculations where a worker leaves a job part-way through a leave year, requiring a pro-rating of the annual statutory minimum entitlement
- How statutory holiday entitlement is accrued and calculated for irregular hours and part-year workers
- Calculating statutory holiday entitlement accrued by irregular hours and part-year workers while they are on maternity or family-related leave or off sick
- The operation of rolled-up holiday pay, which is permitted for irregular hours and part-year workers
- Calculating holiday pay for irregular hours and part-year workers
Key Action Points for Human Resources and In-House Counsel
The guidance contains worked examples to illustrate how the calculation of holiday entitlement and pay should operate under the new regime.
Employers should update their policies and procedures so that they comply with the new holiday entitlement and holiday pay rules.
Clyde & Co can assist you in adapting to these changes and ensuring compliance with the reforms.
The Flexible Working (Amendment) Regulations 2023; Employment Relations (Flexible Working) Act 2023; Code of Practice on requests for flexible working | Acas
