The Employment Rights Act has increased 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,
This is to apply from April 2020.
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.
Holiday pay for permanent staff who only work part of the year – such as term-time workers – should be calculated using their average earnings over a 12-week period and not pro-rated, the Court of Appeal has ruled.
The Brazel v The Harpur Trust case, on which this ruling is based, is subject to appeal and thus may change.