Holiday pay

Following our departure from the EU, various legislation has been passed to ensure that the established rights will remain. The adjustments to the Working Time Regulations provide that from the 1 April 2024 the following applies under UK law: 

a) Carry-over – Employees who have not been able to take holiday due to sickness, maternity or other statutory leave will be able to carry over the untaken leave into the next holiday year; 

b) Record keeping – Employers need to keep “adequate” records rather than always a full record of all daily hours;

c) “normal remuneration” – Confirming within UK legislation that holiday pay is to be calculated on the basis of “normal remuneration” which would include (among other things) commission and regular overtime; 

d) Rolled-up holiday – For holiday years starting on or after 1 April 2024, Employers will (again!) be permitted to pay “rolled up” holiday pay for irregular hours and part-year workers. This means an additional amount can be added to the monthly pay to cover holiday rather than paying holiday when an employee actually takes the annual leave. 

e) Irregular and part-time workers – A statutory method for holiday accrual for irregular and part-time workers now provides for the accrual of holiday based on 12.07% of the hours worked in the previous pay period. (The 12.07% is the proportion of statutory leave in relation to the working weeks of each year). 

Holiday pay can be tricky, but we are always happy to help and our HR Shield can help you keep track!