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Holiday Pay and Entitlement Reforms

January 11, 2024

The Department for Business and Trade (DBT) has released new guidelines outlining modifications to the Working Time Regulations, effective from January 1, 2024. These changes, introduced by the government, aim to streamline holiday entitlement and pay calculations. The alterations include:


  1. Clear identification of irregular hours workers and part-year workers concerning the implementation of the holiday entitlement accrual method and rolled-up holiday pay.
  2. Removal of the Working Time (Coronavirus) (Amendment) Regulations 2020, impacting the accrual of COVID-19 carryover leave.
  3. Maintenance of existing holiday pay rates—where 4 weeks are paid at the normal rate of pay and 1.6 weeks at the basic rate of pay—while upholding the division of leave into two distinct categories.
  4. Definition of ‘normal remuneration’ concerning the statutory annual leave of 4 weeks.


Moreover, the guidance outlines forthcoming reforms applicable to leave years commencing on or after April 1, 2024, including:


  1. Introduction of a method for calculating statutory holiday entitlement for irregular hours and part-year workers.
  2. Implementation of a mechanism to determine accrued leave for irregular hour or part-year workers during maternity or family-related leave or periods of illness.
  3. Introduction of rolled-up holiday pay as an alternative method to calculate holiday pay for irregular hours workers and part-year workers.


Have an in-depth read of the guidance set out by The Department for Business and Trade (DBT) here…



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