Note: a pay period is how frequently a worker gets paid, for example, monthly. The government has defined irregular and part-year as the following. We would encourage employers to ensure that working patterns are clear in their workers’ contracts. How a worker is classified will depend on the precise nature of their working arrangements. This is so that employers know which workers the accrual method for entitlement and the introduction of rolled up holiday pay apply to. Definition of an irregular hour worker and a part-year workerĪ definition for irregular hours workers and part-year workers has been set out in regulations. Note that the following reforms will only apply to leave years beginning on or after 1 April 2024:Ģ.

introducing rolled-up holiday pay as an alternative method to calculate holiday pay for irregular hours workers and part-year workers (see section 5.2).

defining what is considered ‘normal remuneration’ in relation to the 4 weeks of statutory annual leave (see section 5.1).

maintaining the current rates of holiday pay where 4 weeks is paid at normal rate of pay and 1.6 weeks paid at basic rate of pay, whilst retaining the 2 distinct pots of leave (see section 5.1).

removing the Working Time (Coronavirus) (Amendment) Regulations 2020 which affect the accrual of COVID-19 carryover of leave (see section 4.1).

introducing a method to work out how much leave an irregular hour or part-year worker has accrued when they take maternity or family related leave or are off sick (see section 3.4).

introducing a method to calculate statutory holiday entitlement for irregular hours and part-year workers (see section 3.1).

defining irregular hours workers and part-year workers in relation to the introduction of the holiday entitlement accrual method and rolled-up holiday pay (see section 2).

Visit employment status for further information on employment status and definitions. Individual contracts should be checked first, and if necessary, independent legal advice sought.Īll the illustrative holiday pay calculations provided in this guidance use gross pay data (before any taxes or deductions).Īll references to ‘worker’ refer to all individuals whose employment status is either as a ‘worker’ or an ‘employee’, meaning they are entitled to paid holiday. This additional holiday is known as contractual holiday entitlement. Many workers will have contracts entitling them to additional paid holiday beyond the statutory minimum. The guidance focuses on the legal minimum entitlement of 5.6 weeks’ paid holiday. If employers introduce changes to terms and conditions, they must seek to reach an agreement with their workers or their representatives. It is not intended to be relied upon in any specific context or as a substitute for seeking advice (legal or otherwise) on a specific circumstance, as each case may be different. It does not provide definitive answers to all individual queries. This guidance sets out the changes to the Working Time Regulations which the government introduced on 1 January 2024.

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