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ARTICLE · 24 MARCH 2020

Holiday Pay Changes Coming In April

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The government has announced changes to holiday pay coming into effect on 6 April 2020. At the moment where a worker has variable pay or variable hours of work holiday pay is calculated using an average of the pay they have received in the last 12 weeks they have worked.

United KingdomEmployment and HR

The government has announced changes to holiday pay coming into effect on 6 April 2020.

At the moment where a worker has variable pay or variable hours of work holiday pay is calculated using an average of the pay they have received in the last 12 weeks they have worked.  This reference period is increasing from 12 to 52 weeks.  The Good Work Plan considered that this change would allow greater flexibility for workers when choosing to take holidays, especially those in seasonal or variable roles who often do not benefit from their full holiday pay entitlement.

If a worker has less than 52 weeks service, employers should calculate holiday pay using the number of complete weeks' service they have accrued with that employer at the date of taking the holiday.

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