Employment Law Change: Rolled-Up Holiday Pay for Irregular Workers

Happy barista working in coffee shop... representing an irregular worker (employee with irregular hours).

The landscape of holiday pay is evolving. As of the 1st of April 2024, UK legislation will see a notable shift, allowing the use of rolled-up holiday pay for employees with irregular hours or those working part of the year. This change addresses the unique needs of a flexible workforce, legalising a practice that was previously considered outside the bounds of law, for specific worker categories.

For business and HR leaders, this presents an opportunity to reevaluate pay structures and enhance compliance strategies. The new legislation demands careful planning to implement rolled-up holiday pay correctly. Employers must assess worker eligibility, establish transparent processes, and ensure that pay practices are in full compliance with the updated legal framework.

This move towards flexibility in holiday pay calculation signifies a broader trend in employment law towards accommodating diverse working patterns. By embracing these changes, companies can offer more adaptable employment terms, potentially increasing appeal to a wider talent pool.

As we approach the implementation date, now is the time for leaders to familiarise themselves with the specifics of the legislation, ensuring their organisations stay ahead in a dynamically changing employment landscape.

If you’d like to discuss these changes to holiday pay and plan how they’ll be implemented within your business… we’d like to hear from you. Call today – make Personology your outsourced HR department and ensure your business stays compliant.