Holiday pay and entitlement reforms beginning from 1 January 2024

News  |   11 January 2024

Written by
Emma Thompson, Partner

Last week, on 1 January 2024, the government 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 holiday pay and entitlement, a method of calculating both of these entitlements, and the leave accrued when they take maternity or family related leave or are off sick.

Other changes the government made in the Holiday pay and entitlement reforms (1 January 2024) include:

  • removing the Working Time (Coronavirus) (Amendment) Regulations 2020 which affect the accrual of COVID-19 carryover of leave,
  • maintaining the current rates of holiday pay where 4 weeks is paid at normal rate of pay and 1.6 weeks paid at basic rate of pay, whilst retaining the 2 distinct pots of leave,
  • defining what is considered ‘normal remuneration’ in relation to the 4 weeks of statutory annual leave,
  • introducing rolled-up holiday pay as an alternative method to calculate holiday pay for irregular hours workers and part-year workers.

More information on this topic can be found here.

If you wish to speak to a member of our Employment team, please call us on 0208 290 0440.

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