For April 2024, one of the key changes the Government has made to the WTR is the way that statutory holiday entitlement is calculated for certain workers. This has been done in response to the Supreme Court decision in Harpur Trust v Brazel. For workers who meet the definition of an irregular hours worker or a part-year worker, statutory annual leave will accrue at the rate of 12.07 per cent of hours worked.
When does this take effect?
This change to the regulations on holiday entitlement for irregular hours and part-year workers will apply in respect of any leave year that begins on or after 1 April 2024. Up until that new leave year begins, the existing rules continue to apply, including as required by the Brazel judgment.
What does this actually mean?
For staff on TTO employment contracts, nothing needs to change. However, for all casual workers, this means that a minimum of 12.07 per cent uplift can be applied on their hourly rate to provide them with holiday pay. This holiday pay needs to be itemised on payslips, which means that paying a flat rate inclusive of holiday pay is no longer a viable option. Records must be kept to show all casual hours worked (and that holiday pay has been applied). We will continue to store all information sent to us which will then support you in maintaining said records. Please also note that casual staff should earn at least the national minimum/living wage before any holiday pay uplift is applied.
