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Nov 27, 2019 · Double Holiday: Directed by Don McBrearty. With Carly Pope, Kristoffer Polaha, Laura Cilevitz, Barbara Eve Harris. Rebecca endures working with her colleague and rival Chris to plan the office Christmas party in hopes of getting a promotion.
- (1.6K)
- Drama, Romance
- Don McBrearty
- 2019-11-27
Rebecca must throw the company holiday party with office rival, Chris. It coincides with Hanukkah, so she must juggle her work, family traditions, and nemesis to make the party a success. Stars Carly Pope, Kristoffer Polaha.
- 1. Introduction
- 2. Definition of an irregular hour worker and a part-year worker
- 3. Holiday entitlement for irregular hours workers and part-year workers
- 4. Carryover of leave
- 5. Holiday pay calculations
- 6. Additional resources
The government has introduced reforms to simplify holiday entitlement and holiday pay calculations in the Working Time Regulations.
These changes include:
•defining irregular hours workers and part-year workers in relation to the introduction of the holiday entitlement accrual method and rolled-up holiday pay (see section 2)
•introducing a method to calculate statutory holiday entitlement for irregular hours and part-year workers (see section 3.1)
•introducing a method to work out how much leave an irregular hour or part-year worker has accrued when they take maternity or family related leave or are off sick (see section 3.4)
•removing the Working Time (Coronavirus) (Amendment) Regulations 2020 which affect the accrual of COVID-19 carryover of leave (see section 4.1)
A definition for irregular hours workers and part-year workers has been set out in regulations. This is so that employers know which workers the accrual method for entitlement and the introduction of rolled up holiday pay apply to.
How a worker is classified will depend on the precise nature of their working arrangements. We would encourage employers to ensure that working patterns are clear in their workers’ contracts.
The government has defined irregular and part-year as the following.
Note: a pay period is how frequently a worker gets paid, for example, monthly.
3.1 How statutory holiday entitlement is accrued
For workers who are not irregular hours or part-year workers, there is no change in how their statutory holiday entitlement is accrued. The method remains so that in the first year of employment, workers receive one twelfth of the statutory entitlement on the first day of each month. After the first year of employment, a worker gets holiday entitlement based upon their statutory and contractual entitlement. Their entitlement will be based upon the proportion of a week which they are contracted to work. This is known as ‘pro-rating’. For leave years that begin before 1 April 2024, holiday entitlement will continue to be calculated in the same way for irregular hours and part-year workers. Use the holiday entitlement calculator to work out entitlement. For leave years beginning on or after 1 April 2024, there is a new accrual method for irregular hour workers and part-year workers in the first year of employment and beyond. Holiday entitlement for these workers will be calculated as 12.07% of actual hours worked in a pay period. Example of how statutory holiday entitlement is accrued Jill works irregular hours and is paid monthly. Her leave year starts on 1 April 2024. She is entitled to the statutory minimum holiday entitlement only. In June, she works 68 hours. To work out how much holiday she accrues in June, you will need to calculate 12.07% of 68 hours. Table 1: calculation of statutory holiday accrual for irregular hours and part-year workers Answer: Jill accrues 8 hours of holiday during the month of June. Note: the hours can be rounded down (to zero if it is less than 30 minutes) but will be rounded up to one hour if it is 30 minutes or more than 30 minutes. The 12.07% figure is based on the fact that all workers are entitled to 5.6 weeks’ leave. This means that a worker’s total working weeks in a year is 46.4 (52 weeks in a year minus 5.6 weeks of leave). 12.07% of 46.4 is 5.6. This figure is based on the statutory minimum holiday entitlement (5.6 weeks). An irregular hour or part-year worker may be entitled to more than the minimum, if this is specified in their contract. To find the relevant percentage for these workers, you would need to do the following calculation: (total holiday entitlement ÷ remaining working weeks in the year) x 100. For example, if a part-year worker is entitled to 6 weeks of leave as per their contract, then: 6 ÷ 46 = 0.1304 0.1304 x 100 = 13.04 Therefore, this worker’s holiday entitlement would be calculated as 13.04% of actual hours worked in a pay period. The accrual method to work out entitlement will apply to an agency worker if the agency worker’s arrangements fall within the meanings of both a “worker” (as already defined) and either an “irregular hours worker” or a “part-year worker”, as per the new definition in the Working Time Regulations. An agency worker who is a “worker” but not an “irregular hours worker” or a “part-year worker”, will continue to accrue leave at one twelfth of their entitlement at the start of each month during their first year of employment. Statutory paid holiday entitlement is limited to 28 days. For example, staff working 6 days a week are only entitled to 28 days’ paid holiday.
3.2 Leave entitlement when leaving a job part-way through a leave year
If a worker leaves their job part-way through a leave year, a calculation should be completed to check the worker has received the statutory minimum holiday entitlement to which they are entitled. Any shortfall should be paid in lieu of untaken leave. In such cases, statutory annual leave entitlement can be calculated as: Leave entitlement for full year × Proportion of leave year in employment This is calculated in a 3-step method: Calculate the worker’s full annual leave entitlement. Work out the proportion of the leave year in employment. Pro-rate based on the proportion of the year in employment. Days worked per week example Edward has been working for his current employer for more than a year, working 6 days per week. His current leave year started on 1 July 2024, ending 30 June 2025 and he is leaving his role on Saturday 16 November 2024. Table 2: calculation of leave entitlement when leaving during leave year, based on days per week Answer: Edward’s statutory holiday entitlement is 10.7 days.
3.3 Hours worked per week
Where workers work a fixed number of hours each week but not the same number of hours each day, the legislation does not state how to incorporate the 28-day statutory cap when calculating their full annual leave entitlement. In our view it is appropriate to incorporate the cap as 28 days of the worker’s average working day. Therefore, statutory leave entitlement should be calculated in days, and then multiplied by the average length of the working day. The average working day is defined as: Average working day = hours worked per week ÷ days worked per week. Example of calculating holiday entitlement when on fixed hours Irene works a total of 30 hours over 4 days a week, working 9 hours on Monday and Wednesday and 6 hours on Tuesday and Thursday. Her statutory entitlement in days is the lower of 28 days or 5.6 x 4 days (22.4 days). Therefore, Irene’s full statutory annual leave is 22.4 days. Her average working day is 30 hours divided by 4 days, or 7.5 hours per day. Therefore, Irene’s statutory holiday entitlement for a full leave year is 22.4 days x 7.5 hours = 168.0 hours a year. Depending on which days she takes off as leave, it will either be 6 hours or 9 hours from her total leave entitlement. Workers who leave employment have their annual leave pro-rated based on the time that they spent in work as a proportion of the year. This is calculated based on calendar days in employment, not days spent at work. This is calculated in a 4-step method: Calculate the worker’s full annual leave entitlement. Work out the proportion of the leave year worked. Pro-rate based on the proportion of the year worked. In our view, it is appropriate to then multiply by the average working day to convert into hours. Example of calculating leave when worker leaves during leave year when on fixed hours Mary has been working for her current employer for more than a year, working 45 hours a week over 4 days. Her leave year started on 1 April 2024, running until 31 March 2025 and she is leaving her role on Thursday 25 July 2024. Table 3: calculation of entitlement for a worker who works fixed hours leaving during a leave year Answer: Rounded to the nearest hour, Mary’s statutory holiday entitlement in hours is 80 hours.
From 1 January 2024 the following principles relating to the carryover of annual leave apply.
Workers can normally carry over a maximum of 8 days into the next leave year, with the agreement of their employer.
If a worker gets more than 28 days’ leave, their employer may allow them to carry over any additional untaken leave. Check the employment contract, company handbook or intranet to see what the rules say.
If any worker is unable to take some or all of their statutory holiday entitlement as a result of taking a period of maternity or other family related leave, then they will be entitled to carry forward up to 28 days of their untaken leave into the following leave year.
If a worker working regular hours and all year round is unable to take some or all of their statutory holiday entitlement as a result of being off sick, then the worker will be entitled to carry forward up to 20 days of their untaken leave into the following leave year, provided it is then taken by the end of the period of 18 months starting from the end of the leave year in which it was accrued. These 20 days should be paid at the ‘normal’ rate.
An irregular hour’s worker or part-year worker will be entitled to carry over up to 28 days of leave in these circumstances. Again, this worker would need to use that leave they have carried over within 18 months starting from the end of the leave year in which it accrued.
5.1 Holiday pay rates
All full-year workers, except those who are genuinely self-employed, are legally entitled to 5.6 weeks of paid statutory holiday entitlement per year. Four weeks of this entitlement must be paid at a worker’s ‘normal’ rate of pay (as specified by Regulation 13 of the Working Time Regulations). This could include regular payments, such as overtime, regular bonuses and commission. The remaining 1.6 weeks’ entitlement can be paid at ‘basic’ rate of pay, that is, the worker’s basic remuneration (as specified by Regulation 13A). The regulations do not state which entitlement should be used first. Many employers choose not to distinguish between the 2 pots of leave, and to pay the entire 5.6 weeks at the ‘normal’ rate of pay. If an employer wishes to pay different holiday rates for different periods of leave, then they should consider explaining this clearly and consistently to the worker, for example in the worker’s contract or staff handbook. Holiday pay is based on the legal principle that a worker should not suffer financially for taking holiday. The amount of pay that a worker receives for the holiday they take depends on the number of hours they work and how they are paid for those hours. Pay received by a worker while they are on holiday should reflect what they would have earned if they had been at work and working. From 1 January 2024, the components which must be included when calculating ‘normal’ rate of pay are defined in regulations. The following payments must be included in the 4 weeks of normal (regulation 13 leave) holiday pay: payments, including commission payments, intrinsically linked to the performance of tasks which a worker is contractually obliged to carry out payments relating to professional or personal status relating to length of service, seniority or professional qualifications other payments, such as overtime payments, which have been regularly paid to a worker in the 52 weeks preceding the calculation date Workers with regular hours and fixed pay must receive the same holiday pay as the pay they would receive if they were at work and working. For example, workers typically on a fixed monthly salary, if they take a week’s holiday, they will receive the same pay at the end of the month as they normally receive. For leave years beginning on or after 1 April 2024, part-year and irregular hours workers are legally entitled up to a maximum amount of 5.6 weeks of paid statutory holiday entitlement per year, calculated according to actual hours worked using the 12.07% accrual method. If their employer chooses to use rolled-up holiday pay, then the entire amount of their leave for irregular hours and part-year workers will be paid at the ‘normal’ rate of pay. The rolled-up holiday pay method is set out below. Employers may choose not to use rolled-up holiday pay, in which case they can use the existing 52-week reference period method to look back at a worker’s previous 52 paid weeks to calculate what that worker should be paid for a week’s leave. Both methods are set out in more detail in the sections below. Workers who are irregular hours or part-year workers will have all of their statutory holiday entitlement paid at a rate based on their total pay, whether it is calculated as rolled-up holiday pay or by reference to the previous 52 weeks.
5.2 Rolled-up holiday pay
Rolled-up holiday pay allows employers to include an additional amount with every payslip to cover a worker’s holiday pay, as opposed to paying holiday pay when a worker takes annual leave. The regulations allow employers to use rolled-up holiday pay as an additional method for calculating holiday pay for irregular hour and part-year workers only, for leave years beginning on or after 1 April 2024. The calculation of holiday pay by employers is 12.07% of a worker’s total pay as 12.07% is the proportion of statutory annual leave in relation to the working weeks of each year, for example, 5.6 weeks of statutory annual leave divided by 46.4 working weeks of the year. Employers using rolled-up holiday pay should calculate it based on a worker’s total pay in a pay period. A pay period is the frequency at which workers get paid, that is weekly, fortnightly, monthly, and the like. If employers intend to start using rolled-up holiday pay, they should check their workers’ contract in case this amounts to a variation of contract. Employers should tell their workers if they intend to start using rolled-up holiday pay and for this payment to be clearly marked as a separate item on each payslip. The holiday pay should be paid at the same time as the worker is paid for the work done in each pay period. Employers of agency workers must include this information in the agency worker’s Key Information Document. The holiday pay should be paid at the same time as the worker is paid for the work done in each pay period. Rolled-up holiday pay is to be paid in addition to the worker’s normal salary, which should be at National Minimum Wage or above. If annual leave is carried over where a worker is paid using rolled-up holiday pay, the leave will already have been paid at the time the work was done. Employers that do not want to use rolled-up holiday pay for irregular hour and part-year workers can continue to use the existing 52-week reference period to calculate holiday pay for irregular hour workers if they choose to do so as set out in section 5.3 below. If a worker who receives rolled-up holiday pay goes off sick or takes maternity / family-related leave during a pay period, their rolled-up holiday pay would be calculated according to average amount of the worker’s total earnings in each pay period during the 52-week relevant period. Tables 6 and 7 below set out how to calculate how much rolled up holiday pay a worker could receive under different scenarios. Example: holiday entitlement when paid weekly Hana works irregular hours and is paid weekly. Her hourly rate is £10.42 per hour for all shifts. In the week 1 October to 7 October, Hana worked 35 hours. To work out how much rolled-up holiday pay Hana is entitled to, you will need to calculate 12.07% of Hana’s total pay in this pay period. Table 6: rolled-up holiday pay calculation when a worker’s basic pay is their normal pay Answer: Hana is entitled to receive £44.06 rolled-up holiday pay in her payslip for the period 1 October to 7 October. Example: holiday entitlement when paid fortnightly Mark works irregular hours and is paid fortnightly. His hourly rate is £11 per hour (normal hourly rate) for shifts 7am to 11:59pm and £12 per hour (enhanced hourly rate) for shifts midnight to 6:59am. In the fortnight 1 August to 14 August, Mark worked 40 hours. He worked 20 hours at normal rate (£11 per hour) and 20 hours at an enhanced rate (£12 per hour). To work out how much rolled-up holiday pay Mark is entitled to, you will need to calculate 12.07% of Mark’s total pay in this pay period. Table 7: rolled-up holiday pay calculation when a worker’s shifts are at a premium rate Answer: Mark is entitled to receive £55.52 rolled-up holiday pay in his payslip for the period 1 August to 14 August. As Table 7 shows, the calculation for rolled-up holiday pay applies to a worker’s total pay in a pay period, regardless of differing hourly rates of pay.
5.3 A 52-week reference period to calculate holiday pay
Where a worker has irregular hours or works part of the year, employers can calculate their holiday pay using an average from the last 52 weeks in which they have worked and have earned pay. If a worker has not been in employment for long enough to build up 52 weeks’ worth of pay data, their employer should use however many complete weeks of data they have. For example, if a worker has been with their employer for 26 complete weeks, that is what the employer should use. If a worker takes leave before they have been in their job a complete week, then the employer has no data to use for the reference period. In this case the reference period is not used. Instead, the employer should pay the worker an amount which fairly represents their pay for the length of time the worker is on leave. In working out what is fair, the employer should take into account: the worker’s pay for the job the pay already received by the worker (if any) what other workers doing a comparable role for the employer (or for other employers) are paid How far back employers should look To prevent employers having to look back more than 2 years to reach 52 weeks’ of pay data, there is a cap on how far back employers should look. Any weeks that are before the 104 complete weeks prior to the first day of the worker’s holiday are not included. In this case the reference period is shortened to however many weeks are available in this 104-week period. Employers should still only count back as far as is needed to achieve 52-weeks’ worth of pay data if this is less than 104 weeks. Where a worker has been employed by their employer for less than 52 weeks, the reference period is shortened to the number of weeks of their employment. The reference period must only include weeks for which the worker was actually paid. It must not include weeks where they were not paid as they did not work. Where this gives less than 52 weeks to take into account (that is, where the worker has many weeks without any remuneration), the reference period is shortened to that lower number of weeks. If a worker started work 30 weeks ago, employers should use pay data from as many of those weeks that the worker was paid to calculate the worker’s holiday pay and provide a fair rate of pay. If an employer has counted back over 104 weeks and has only found 40 weeks of pay data for a worker, then the employer should use these 40 weeks of pay data. If a worker has taken a period of leave within the 52-week reference period, then any weeks on which no pay was due should not be included when calculating pay (in contrast to the calculation of holiday accrued). Any weeks with time off sick or on maternity/ family-related leave are also excluded from the reference period. Instead, additional earlier paid weeks should be included to achieve the 52-week total. The definition of a ‘week’ for the purpose of the holiday pay reference period The relevant definitions within the Employment Rights Act 1996 are: a week starts on a Sunday and ends on a Saturday; the holiday pay reference period should start from the last complete working week that was worked ending on or before the first day of leave, starting on a Sunday and ending on a Saturday. Under the Employment Rights Act 1996, the holiday pay reference period starts from the last whole week ending on or before the first day of the period of leave. This will typically be a week from Sunday to Saturday, but it could end on another day of the week if a worker is paid on a weekly basis. There is an exception for workers whose pay is calculated weekly by a week ending on a day other than Saturday. In these cases, a week is treated as ending with that other day. For example, if a worker’s pay is calculated by a week ending with a Wednesday, then the employer should treat a week as starting on a Thursday and finishing on a Wednesday. Table 8: 52-week reference period holiday pay calculation examples
Workers should not suffer detriment for querying whether they are receiving the correct holiday entitlement and pay.
If workers feel that they are being denied their statutory holiday entitlement or holiday pay or any other employment rights, they may wish to speak to the Advisory, Conciliation and Arbitration Service (Acas).
Acas provide free and impartial advice to employers and workers on employment matters. You can read their guidance on holiday entitlement and pay for more information.
Contact information for Acas is below:
Acas helpline
Telephone: 0300 123 11 00
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