New Guidance on Holiday Pay & Entitlement

2nd February 2024

The Government has published new guidance aimed at helping employers navigate the changes to holiday pay and entitlement introduced in January 2024.

Irregular hours and part year workers

For leave years beginning on or after 1 April 2024, there is a new accrual method for irregular hour workers and part-year workers in the first year of employment and beyond.

Holiday entitlement for these workers will be calculated as 12.07% of actual hours worked in a pay period.

For example, A works 68 hours in June, A’s statutory holiday entitlement for June is 68*12.07% = 8.2 hours, rounded down to 8 (if less than half an hour, you can round down).

Holiday pay

Elements of pay which must be included in holiday pay calculations for the first 4 weeks of leave are:

1. 1. payments, including commission payments, intrinsically linked to the performance of tasks which a worker is contractually obliged to carry out
   2. payments relating to professional or personal status relating to length of service, seniority or professional qualifications
   3. other payments, such as overtime payments, which have been regularly paid to a worker in the 52 weeks preceding the calculation date

Rolled-up holiday pay

The regulations allow employers to use rolled-up holiday pay as an additional method for calculating holiday pay for irregular hour and part-year workers only, for leave years beginning on or after 1 April 2024.

Need help understanding the new holiday pay guidance?

We give businesses personal support from qualified HR advisors to manage workplace compliance and HR challenges with confidence with our fixed-fee unlimited advice line.

Speak to an expert today on 01622 47 41 49 or emailing info@primed.co.uk.