07 February 2020 Julia Ascott, Employment Taxes Specialist
Changes from April to the reference period for determining an average week’s pay for holiday pay purposes
From 6 April 2020, the reference period for determining an average week's pay for workers with irregular hours in order to calculate statutory holiday pay will increase from 12 weeks to 52 weeks (or the number of complete weeks the employee has been employed if not yet reached 52 weeks). The aim is to provide a more appropriate reference period for those workers with irregular working patterns. These workers can often be disadvantaged where the 12 weeks preceding the holiday reference period falls in a less busy part of the year so will particularly effect, for example, workers on a zero-hour contract who are only paid during term time.
To find further information on calculating holiday pay
Any queries on this matter, please contact Julia Ascott.