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Frequently Asked Questions
What is the 12.07% accrual method for irregular hours workers?
The 12.07% accrual method calculates holiday entitlement for irregular or part-year workers. It is derived from 5.6 weeks ÷ 46.4 working weeks (52 minus 5.6) = 12.07%. This method was restored from 1 April 2024 under the Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2024.
How is the 12.07% rate calculated?
The 12.07% rate is calculated as (5.6 ÷ 46.4) × 100. It represents the statutory minimum holiday entitlement of 5.6 weeks expressed as a percentage of the non-holiday working weeks in a year.
Is rolled-up holiday pay legal for irregular hours workers?
Yes, from 1 April 2024 rolled-up holiday pay is lawful for irregular hours and part-year workers. It must be at least 12.07% of pay and shown as a separate line item on payslips. See GOV.UK for details.
How should holiday pay be calculated for irregular hours workers?
Holiday pay should reflect average earnings over the previous 52 paid weeks. Weeks with no pay are excluded from the average. This ensures the rate reflects typical earnings including any regular overtime or variable pay.
Who counts as an irregular hours or part-year worker?
Irregular hours workers have hours that are wholly or mostly variable under their contract. Part-year workers are employed year-round but only work certain weeks, such as term-time workers, zero-hours workers, and casual workers.