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The basic right to annual leave is that a worker is entitled to 5.6 weeks’ leave each year. This is the equivalent to 28 days for those working five days a week. Subsequently, a part time worker is entitled to a pro rata amount of 28 days, according to the number of days they work.
For leave years starting on or after 1 April 2024, “irregular-hours workers” and “part-year workers” holiday entitlement will be calculated in hours and will accrue on the last day of each pay period at the rate of 12.07% of the number of hours they have worked during that pay period. This method of calculation is used because 5.6 (being the number of weeks’ leave entitlement) is 12.07% of 46.4 (the number of weeks worked).
“Irregular-hours worker” and “part year workers” are defined in the Working Time Regulations in relation to the introduction of the holiday entitlement accrual and rolled-up holiday pay, and include workers whose hours are irregular, and workers who have periods of at least one week during the year where they do not work and are not paid.
Employers will be able to choose to pay holiday pay either when the holiday is taken, or pay rolled-up holiday pay whereby the uplift of 12.07% is made to the workers remuneration for work carried out in each pay period. Workers will then not be paid at the time they take their holiday but must be allowed to take it.
For those employers whose leave years run from 1 January to 31 December, the new rules will not come into effect until 1 January 2025.
As well as the above, other changes to the Working Time Regulations include:
- Introducing a method to work out how much leave an irregular hour or part-year worker has accrued when they take maternity or family related leave or are off sick; and
- Removing the regulations affecting the accrual of carryover of leave during because of COVID-19; and
- Defining what is meant by “normal remuneration” is relation to the first four weeks of statutory annual leave.
The changes are intended to simplify something that has been the subject of many disputes between employers and workers over a number of years.
Advice
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