Starting April 2024, there are new rules for calculating holiday entitlement and pay for workers with irregular hours (like zero-hours workers) and part-year staff (such as term-time employees). These rules apply from the beginning of your first new leave year on or after April 1, 2024.
If your leave year runs from January to December, these new rules take effect from January 2025, and your current system remains in place until then. You’ll have two options for calculating holiday entitlement/pay: the ‘default’ method or the ‘rolled-up holiday’ method.
Under the ‘default’ method, workers accrue holiday based on 12.07% of hours worked in each pay period. When they take holiday, you pay them based on their average earnings over the previous 52 weeks.
With the ‘rolled-up holiday pay’ method, you add an extra 12.07% to their usual pay in each pay packet, which represents their holiday pay. Then, they won’t receive additional payment when taking holiday.
If you decide to switch methods, it’s important to discuss and agree on these changes with your staff beforehand, as it will affect their terms and conditions of employment.
For advice from our friendly Hitchin-based team, get in touch:
020 7183 8241 | info@modina.co.uk