Streamlining Holiday Pay: The New Accrual System

Woman working in a farmer's field.

In April 2024, a significant change will simplify holiday pay calculations for UK employers, particularly benefiting those with irregular or part-year workers. Following the Supreme Court’s decision in Harpur v Brazel, a new legislation mandates the calculation of holiday pay at an hourly rate of 12.07%, ensuring a straightforward approach to determining entitlements.

This pivotal change, applicable from April 1st, 2024, is designed to ease administrative burdens, making it easier for employers to comply with legal requirements while providing fair compensation to their employees. It’s a move towards clarity and fairness in holiday pay, aligning with modern work patterns that often deviate from the traditional 9-5 model.

For business and HR leaders, now is the time to get ahead. Understanding the nuances of this new system will be key to seamless implementation. It’s not just about compliance; it’s about embracing a change that supports the diverse working schedules of today’s workforce.

If you’d like to learn more about the new holiday pay accrual system and how it will affect your business… we’d like to hear from you. Call today – make Personology your outsourced HR department and ensure your business stays compliant.