Christmas comes early as the wait is finally over for the response to holiday pay calculations

Our Payroll and HR consultants are absolutely thrilled as the UK Government has finally released its response to holiday pay averages for irregular and part-year workers.

And it’s good news as the effect of the Harpur Trust v Brazel decision, implemented in 2020, has been overturned and rolled up holiday pay will once again become lawful for irregular hours workers (zero hours workers) and part year workers. We know this has caused so many companies and lots of our clients a real struggle and drain on resources to navigate so we’re so pleased the response has finally been released and will come into place in January 2024. It’ll be a Happy New Year indeed!

The calculation will be based on total earnings in the pay period with an accrual method to ensure leave is based on hours actually worked in the year. Leave will be accrued based on 12.07% of hours worked in the monthly, weekly, daily pay period.

It’s essential for us to prepare for these changes, time to review payroll systems and processes to accommodate the adjustments required for calculating holiday pay averages.

The changes coming into effect aim to give fair compensation for employees with non-standard work patterns so it’s also a great time to communicate these changes to your workforce, provide a clear explanation and address any concerns or questions they may have.

Is your organisation aware of the upcoming changes, how this effects your staff and how to implement the changes?

By helping you adapt your payroll systems and effectively communicating with employees, we can help you ensure fair compensation, compliance and maintain a positive work environment.

Can our dedicated Payroll Advisory and HR Advisory team help you? With the right support we can make the changes as simple as possible for you. Find out more here.