On 1st April 2024 the Department for Business and Trade updated their guidance on holiday entitlement and holiday pay following the implementation of the Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023 (SI 2023/1426). The guidance is rather optimistically titled ‘Simplifying holiday entitlement and holiday pay calculations.’
It provides guidance on calculating holiday entitlement and holiday pay, focusing particularly on the rights of part-year workers and irregular hours workers and covers various rights, calculations and definitions.
The amendment has removed an example from the previous guidance that suggested that a TTO worker would not be covered by the definition of a ‘part-year worker’ in the Regulations.
We can now be certain that TTO workers will be ‘part-year workers’ and holiday pay can be calculated on a pro rata basis to that of a comparable full year worker.
Some of the changes come into effect from beginning on or after 1 April 2024, namely the accrual of statutory holiday entitlement for irregular hours and part-year workers for leave years, when holiday entitlement will be calculated as 12.07% of actual hours worked in a pay period, calculation of statutory holiday entitlement accrued by irregular hours and part-year workers while they are on maternity or family-related leave or off sick (for leave years) and the operation of rolled-up holiday pay, which is permitted for irregular hours and part-year workers for leave years.
Schools and colleges should note that the 12.07% accrual only relates to the statutory minimum holiday entitlement of 28 days.
The correct formula for the calculation is:-
Number of weeks holiday entitlement
52 minus number of weeks holiday entitlement x 100
Basic Green Book entitlement
6.4 weeks
(52 minus 6.4) x 100 = 14.04%
We have updated our TTO spreadsheet (which has been approved by Unison) to calculate the correct percentage in each of the authorities where we have clients. If any client would like a copy please email
Holiday pay and entitlement reforms from 1 January 2024 – GOV.UK (www.gov.uk)
James Williams
