Change to the Working Time Regulations 1998
Following a change to the Working Time Regulations 1998 which stated rolled up holiday on the basis of 12.07% of hours worked for irregular-hours or part-year workers was unlawful, the government consulted over this amendment and has ruled that holiday for these workers can again be calculated in this way.
From 1 April 2024, employers will again have the option to pay irregular-hours or part-year workers holiday pay that is rolled up with their normal pay. This means that employers can include an additional amount within every payslip to cover this type of workers’ holiday pay, instead of paying for holiday when actually taking leave.
Employers will only be able to renumerate workers in this way if the rolled up holiday is:
- paid as an uplift of 12.07% per hours worked in a pay period (figure based on the statutory minimum holiday entitlement of 5.6 weeks);
- paid in the pay period when the holiday accrues; and
- calculated by reference to total earnings during the pay period.
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