Increase in the Holiday Pay Reference Period from 12 to 52 Weeks
On the 6 April 2020 the Employment Rights (Employment Particulars and Paid Annual Leave) (Amendment) Regulations 2018 (SI 2018/1378) increase the reference period used for determining a week’s pay when calculating holiday pay for workers with irregular hours from 12 weeks to 52 weeks. The Government’s Good work plan states that the changes will allow greater flexibility for workers in choosing when to take holiday, particularly for those in seasonal or atypical roles that limit some workers from benefiting from their full holiday pay entitlement.
From 6 april 2020 employers will need to look back over the past 52 weeks, discarding any weeks that a worker did not earn pay, to calculate their average weekly pay.
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