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Holiday pay changes for irregular hours and part year staff

Updated: Mar 18



Holiday for irregular hours workers and part year staff is set to change again from April 2024 due to changes to the Working Time Regulations 1998.


What do employers need to do?

The first things to do is to confirm that your casual or zero hours employees fall within the definition of irregular hours or part year workers.


Irregular hours are those workers whose paid hours set out in their contract vary in each pay period; a zero hours contract would meet this definition as there is no guarantee of hours to be offered or worked each week.


Part-year workers are those who are contractually only required to work for part of the year and have no other paid contract with the employer i.e. a term time worker paid only when they work, or an exam invigilator needed only for certain weeks of the year (not somebody who joins or leaves part way through the year on a permanent contract).


When does the change take place?

The next thing to consider is when the holiday year runs from and to. The changes being introduced on 1 April 2024 will apply to all holiday years starting on or after that date. So, if employers have a holiday year that runs April to March, the changes will apply immediately. If, however, they have a different holiday year, such as a calendar year, calculations may change part way through the year or can be implemented in the following holiday year.


Consult with staff

Once you are clear which workers are affected, you should consult with staff in order to implement the change to the way their holiday is paid. A letter confirming this change should be issued once consultation has taken place and employees have agreed to the change.


Holiday pay

For holiday years starting on or after 1st April 2024, staff working part of a year, or irregular hours will accrue holiday based on 12.07% of the hours worked in the pay period.


Payment can be made in each pay period, with holiday ‘rolled up,’ so the hourly rate having a 12.07% increase applied to equate to the statutory minimum l5.6 weeks of annual leave, although this ‘roll up’ must be clearly identified separately on the payslip.

Or

Irregular hours or part year workers can book holiday like all other staff, with payment for holiday made when the employee is on holiday.


Check out our other blogs in the series:


If you would like support with initiatives to improve company culture or wellbeing, get in touch via clientservices@robinsongracehr.com or call us on 01793 311937.


The content of our blogs is intended for general information and not to replace legal or other professional advice.

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