As the UK steps into the New Year, the Department for Business and Trade has published guidance on the reforms the Government has introduced, which is designed to simplify the complexities surrounding holiday entitlement and pay calculations in the Working Time Regulations.
Published on the 1st of January 2024, the official guidance document can be accessed on the Government website. While it may not provide exhaustive answers to individual queries or serve as a substitute for expert legal advice, the guidance offers valuable insights. Notably, the guidance covers such topics as:
- Definition of an “irregular hours worker” and a “part year worker”
- Holiday entitlement for “irregular hours workers” and “part-year workers”
- Carryover of leave
- Holiday pay calculations
The guidance emphasises the legal minimum entitlement of 5.6 weeks of paid holiday, using gross pay data before any tax deductions. The term “worker” includes individuals with employment status as either a “worker” or an “employee,” meaning they are entitled to paid holiday.
Holiday entitlement and calculating holiday pay can be a dangerous minefield for employers to navigate. Given the nature of holiday entitlement and pay calculations, the guidance serves as a valuable tool for employers to avoid potential pitfalls. It also provides clarity on the legal framework and offers practical examples.
For those seeking expert legal advice on thorny matters related to holiday entitlement and pay, or have any employment or HR law queries, please reach out to Jonathan Moreland (jmm@swinburnemaddison.co.uk) or Phoebe Gogarty (pgg@swinburnemaddison.co.uk) who can be contacted at 0191 3842441
