Click anywhere on the bar, to resend verification email. The average UK holiday entitlement including public holidays is 33.5 days – that’s more than a week above the statutory minimum. We want to make sure you're kept up to date. However, the Regulations do not define a ‘good reason’ for this purpose. Under the new regulation 13(12) WTR 1998 (inserted by regulation 3 of the Regulations) the employer will only be able to prevent a worker from taking carried over leave on particular days where the employer has ‘good reason’ to do so. {{vm.newUser1}} Save what resonates, curate a library of information, and share content with your network of contacts. Therefore, many employers base holiday entitlement for staff with irregular hours on 12.07% of the hours worked however, this is not prescribed by the working time tegulations 1998, and following a recent court of appeal case, is no longer included in the BEIS guidance. By agreement negotiated between employers and their workers, the additional 1.6 weeks of annual leave can be carried forward one leave year (but no further). The UK’s holiday pay reference period for variable working hours will change in 2020: what do employers need to know? Since the last time you logged in our privacy statement has been updated. On Friday 27 March 2020, the Business Secretary Alok Sharma announced that workers who have not used up all of their statutory annual leave entitlement, due to COVID-19, will now be able to carry it over into the next two leave years. Browse articles,  set up your interests, or Learn more. © 2020 KPMG LLP a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. {{ vm.siteSelectorList.flyout.cell1.heading }}, {{ }}, {{ vm.flyout.cell1.viewAll.newTabAllow }}, Calculating holiday entitlement for those with irregular hours. {{vm.newUser1}} Find out more about the UK payroll and tax system by browsing activpayroll’s, The Employment Rights (Employment Particulars and Paid Annual Leave) (Amendment) Regulations 2018, Germany: Two Months Left for Employees to Receive Tax Free Special Payments. Unless the worker is leaving employment, this holiday cannot be replaced with a payment in lieu. You will not receive KPMG subscription messages until you agree to the new policy. Click anywhere on the bar, to resend verification email. In April 2020, the reference period for calculating holiday pay in the UK will change. Under the current system, those types of employees can be disadvantaged by taking holiday after quieter periods of work. Employers must count back across the last 52 weeks that the employee has worked, and received pay. The holiday pay should be calculated using an average of pay in the weeks in which the worker was paid. This is made up of 4 weeks (under regulation 13) and 1.6 weeks (under regulation 13A) of annual leave. Our privacy policy has been updated since the last time you logged in. For example, your employer might agree for you to take holiday soon after you start a new job. Employees are also entitled to 12 paid public holidays. With that date approaching, employers should take steps to implement the necessary changes in their payroll. In the UK all full time workers are entitled to a minimum of 5.6 weeks (28 days) paid holiday per year. Please note that your account has not been verified - unverified account will be deleted 48 hours after initial registration. As part of the Good Work Plan and the government’s response to the Taylor Review of Modern Working Practices, a number of changes to employment legislation will take effect from April 2020.