Calculating Holiday Pay for Zero-Hours Workers

By Gary Smith

Partner

As of 6 April 2020 the government has changed the basis for calculating holiday pay for zero-hours workers or others with no fixed or regular hours.

Under the Working Time Regulations all employees and workers are entitled to a minimum 5.6 weeks’ paid holiday and that payment should be at the individual’s usual pay rate.

For those with irregular hours the usual pay rate should now be calculated based on earnings over the previous 52 weeks, rather than 12 weeks. If the individual has not been employed or engaged for 52 weeks then you should calculate the rate based on the number of weeks they have worked for you.

If you have any queries relating to holiday pay please contact our Employment Team on 0345 646 0406 or fill in our online enquiry form and a member of our Team will be in touch.