Calculating Holiday Pay

April 2024

Most workers have a right to a minimum of 5.6 weeks' paid annual leave. This equates to 28 days for a full-time worker working five days a week. Many receive additional holiday rights under their contracts. No minimum period of continuous service is required to qualify for statutory annual leave. However, under new provisions, part-year and irregular hours workers will no longer accrue statutory holiday in weeks. For holiday years starting on or after 1 April 2024, they will accrue holiday in hours, proportionate to the number of hours worked.

The Department for Business and Trade (DBT) has published guidance, Holiday pay and entitlement reforms from 1 January 2024 (the DBT Guidance) which explains the new categories of worker and gives worked examples. The guidance was first published on 1 January 2024 but was re-published with amendments and clarifications on 1 April 2024.

We can help create or update your Holidays Policy, or review your contracts to make sure they comply with the new rules.

Please contact us for more information.


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