Finally, Holiday Pay Gets Some Sense – UK’s New 2024 Rules
The UK Government’s fresh legislation will make holiday pay a lot less of a headache for irregular workers and part‑year staff on permanent contracts.
What’s New?
- Holiday accrues at 12.07 % of every pay‑period’s hours, capped at 28 days.
- Pay is calculated from average weekly earnings – no fuss about unpaid weeks.
- “Rolled‑up” holiday now gives a 12.07 % lift to regular pay in each period, so no more pie‑caying the payouts.
Why It Matters
Remember the Harper Trust Supreme Court decision that blew minds and left many employers scrambling? Those rules caused more confusion than a season of Game of Thrones. The new model clears that up by accommodating variable hours without the wham‑bang of legacy maths.
Voices From the Field
Dave Chaplin, CEO of ContractorCalculator, says:
“These reforms are a breath of fresh air. They’ll bring much‑needed clarity and fairness, especially for contractors working through umbrella companies. Let’s hope we see fewer holiday‑pay skimmers – a problem we saw on BBC’s MoneyBox a few years back when workers discovered under‑payments.”
He adds:
“Even with simplified rules, workers should still check their pay stubs to confirm the 12.07 % holiday boost is there. Raise any confusion with your hirer – that’s the best defense against errors.”
Crawford Temple, CEO of Professional Passport, echoes his enthusiasm:
“Reducing the mess around holiday pay is a win for everyone. Transparency is key – workers need to understand their entitlement, and employers must deliver the correct amount. The latest changes fix the gaps the court exposed in Harpur Trust v Brazel and promise a clean, compliant process. Let’s hope this means providers stop black‑listing holiday pay forever.”
Bottom Line
Happy for the clearer system that fits the modern workforce and tackles the old conundrums that left workers and employers alike scratching their heads.
