Calculating holiday pay Irregular Workers & Zero Hour Staff

Understanding the Changes to Holiday Entitlement Calculation for Irregular Workers:

The Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023 has amended the Working Time Regulations 1998, aiming to address the holiday entitlement of irregular hours workers and part-year workers.

What were the changes in calculating holiday pay for irregular workers ?

The amendment introduces a new method for calculating holiday entitlement specifically tailored to irregular hours workers and part-year workers.

Traditionally, calculating holiday entitlement for these groups has been challenging due to the variability of their work patterns. However, the new regulation simplifies this process by implementing an accrual method based on hours worked during a pay period.

Under the new system, holiday entitlement will be calculated at 12.07% of hours worked in a given pay period for irregular and part year workers.

This method will apply not only during the first year of employment but also beyond, ensuring consistent treatment and clarity for workers with irregular schedules.

When did the new calculation methods for irregular workers holiday pay come into effect ?

The new changes on how to calculate holiday pay for irregular workers came in to effect as from April 1, 2024

What do employers need to consider about the changes to the Working Time Regulations and irregular workers pay?

While the amendment primarily focuses on improving conditions for workers, employers will also need to adapt to these changes. Ensuring compliance with the new regulations is essential to avoid potential legal claims or challenges

Employers must update their systems and processes to accurately track hours worked and calculate holiday entitlement accordingly.

Clear communication with employees about the changes and how they will be implemented is vital to avoid misunderstandings or disputes.