Holiday Pay Reference Period to Increase from April 2020

When calculating holiday pay, the reference period will be extended to 52 weeks rather than the current 12 weeks and this change will be implemented on 6th April 2020.

This change derives from The Employment Rights (Employment Particulars and Paid Annual) (Amendment) Regulations 2018.

The changes will allow more flexibility for workers, especially those in seasonal or atypical roles, which may restrict the benefit of their full holiday pay entitlement.

Those responsible for calculating holiday pay should ensure records are retained back to at least 52 weeks in order to comply with these changes. Records should include information such as, hours worked and details of pay.