Adrian Johnson
TLDR:
- Holiday entitlement for zero hours and irregular hour workers is changing from April 2024.
- Changes to the Working Time Regulations 1998 will impact how holiday is calculated and paid for these workers.
Calculation of holiday entitlement for workers on zero hours contracts is due to change from April affecting part-time workers. Changes to the Working Time Regulations 1998 will impact how holiday is calculated and paid for irregular hours and part-year workers. The changes will apply to all holiday years starting on or after 1 April 2024, requiring companies to review their holiday provisions and ensure they align with the law.
Full Article
The changes to holiday entitlement for zero hours and irregular hour workers are set to take effect from April 2024. These changes stem from amendments to the Working Time Regulations 1998, aimed at ensuring fair treatment and accurate calculation of holidays for these types of workers.
The first step for employers with zero hours employees is to determine if those workers fall within the definitions of irregular hours or part-year workers. Irregular hours are those whose paid hours vary in each pay period, such as those on zero hours contracts. Part-year workers only work for part of the year and do not receive pay for the rest of the time.
Once the categorization is clear, employers need to establish when their holiday year runs from and to, as the changes will apply to holiday years starting on or after 1 April 2024. This may require adjustments to employment contracts, with consultation and agreement from affected employees. The changes include a new calculation method for holiday accrual and options for how holiday pay is disbursed.
Companies will need to communicate these changes clearly to their employees, particularly the 12.07% calculation method, which may be a significant transition for some workers to understand. Ensuring compliance with the new regulations is crucial to avoid any legal pitfalls or disputes.
Overall, the changes aim to provide more transparent and equitable holiday entitlement for zero hours and irregular hour workers, requiring employers to update their policies and procedures accordingly.
