The Government recently announced rule changes for holiday entitlement and holiday pay for irregular hour workers and part-year workers. These changes are expected to come into effect for holiday years which begin on or after 1 April 2024.
These changes mean that part year workers and irregular hours workers will accrue annual leave on the final day of each pay period (on the basis of 12.07% of each hour worked in that pay period, up to a maximum of 28 days a year).
This practice, that many employers had been using in recent years, was ruled unlawful by the Supreme Court in Harpur Trust v Brazel.
The effect of this judgement? All workers are now entitled to a minimum of 5.6 weeks of leave per year, even if they haven’t worked every week.
The upcoming changes, effective from April 1, 2024, allow for a pro-rata reduction of holiday entitlement (12.07% method) for these workers.
Rolled up holiday pay becomes lawful for part-year and irregular hours workers starting from April 1, 2024. Employers with a January to December leave year can implement these rules from January 1, 2025, but existing contractual provisions must be honoured.
Important: If you currently provide 5.6 weeks’ paid leave to term-time or irregular hours employees, a formal amendment to terms and conditions will likely be needed to comply with the new law.
Stay informed and make the necessary changes: Get in touch with our team to learn more!
020 7183 8241 | info@modina.co.uk