What are the changes?
Regulations have been introduced to address the absence of a statutory method for calculating holiday entitlement for irregular hour and part year workers.
What's the relevant Legislation?
Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023
When does it start?
For holiday periods from April 2024. Companies whose holiday period start in January 2024 need to wait until January 2025.
What is a Part Year Worker?
Someone is a part-year worker if they are contractually required to work only part of a particular holiday year and there are periods within that year (during the term of the contract) of at least a week that they are not required to work and for which they are not paid. This will include some term-time workers, for example.
Melanie, a seasonal worker in the farming industry who only works and gets paid during spring and summer months. Melanie would qualify as a part-year worker if her contract reflects that there are periods of time that last more than a week when she is not contracted to work and does not receive pay.
What is an irregular hour worker?
Kevin, a hospitality worker who works a different number of hours each week. Kevin would qualify as an irregular hours worker if his contract says that the hours he works will be wholly or mostly variable in each pay period. Kevin’s contract could be a ‘casual’ contract, otherwise known as a zero-hours contract.
When so you calculate from?
For holiday years beginning on or after 1 April 2024, holiday entitlement will accrue on the last day of each pay period at the rate of 12.07% of the number of hours that they have worked during that pay period, rounded up to the nearest hour. For example, if a monthly paid worker works 100 hours in a month, they will have accrued 12 hours of annual leave. Where the amount of annual leave that has accrued in a particular case includes a fraction of an hour, where the annual leave accrued is less than 30 minutes it will be treated as zero and it will be treated as one hour if it is 30 minutes or more.
Multiply the total hours worked by 12.07% to give the worker's total annual statutory holiday entitlement in hours.
How much can be accrued?
No more than 28 days, per year.
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