Annual Leave & Holiday Pay: Key Changes for Part-Year and Irregular Hour Workers Starting April 2024

The UK government has introduced significant changes to holiday accrual and pay for part-year and irregular hour workers. These changes, effective from April 1, 2024, will replace the existing rules under Regulation 13 and Regulation 13A of the Working Time Regulations 1998. The new regulations, outlined in Regulation 15B of the Working Time Regulations 1998, aim to ensure fairer holiday rights for these workers.

Key Changes Effective April 1, 2024

Businesses need to prepare for the new holiday accrual and pay regulations for part-year and irregular hour workers. Here’s what you need to do to comply.

Steps to Prepare Your Business

1. Identify Affected Workers: Determine if your workforce includes part-year or irregular hour workers. Identifying these employees is crucial for applying the new rules correctly.
2. Consider Rolled-Up Holiday Pay: Decide if you want to implement rolled-up holiday pay. This method includes holiday pay in regular pay packets, simplifying the process but requiring careful planning.
3. Coordinate with Payroll: Engage with your payroll department to ensure your systems are ready for the new accrual and pay processes. This step is essential to avoid payroll errors and ensure compliance.
4. Update Holiday Policies: Review and update your current holiday policies to align with the new regulations. Clear and updated policies help maintain consistency and prevent confusion.
5. Revise Employment Terms: Update the terms and conditions of employment for affected workers if necessary. Clear communication about these changes is key to preventing misunderstandings and disputes.

Understanding the Impact

The new regulations aim to provide fairer holiday entitlements for part-year and irregular hour workers. By following these steps, businesses can ensure compliance with the new rules and support their employees effectively.

For more detailed guidance on these changes, refer to the official government documentation here.

Conclusion

Compliance with regulatory changes is essential for maintaining an efficient and fair workplace. By proactively identifying affected workers, deciding on holiday pay methods, coordinating with payroll, updating policies, and revising employment terms, businesses can transition smoothly to the new system. This ensures all workers receive their rightful holiday entitlements and fosters a supportive work environment.

Stay informed and prepared for these important changes in holiday accrual and pay, ensuring your business remains compliant and your employees are well-supported.

Reach out to our Employment Lawyers for further advice and assistance.

Credit to Jason Frater