When is it changing: For holiday years, starting April 2024
How to calculate holiday pay for those working irregular hours, such as zero hours or casual bank contracts, has been a bone of contention for some time now.
Since the ruling from the EAT in July 2022, Harpur Trust vs Brazel, holiday pay has had to be calculated based on an average working hours, over a period of the previous 52 weeks.
This has caused a headache for many SMEs employing casual and zero hours workers, to provide flexibility for their workforce.
However, following a period of consultation, the government have now released reforms to simplify the calculations and allow holiday pay to be rolled up for these workers who work irregular hours.
This means that the previous calculation of 12.07% can be used again to calculate holiday pay, and rolled up holiday pay can be paid on a monthly basis.