Holiday reference period extended

Until recently, the holiday pay reference period was 12 weeks for workers with no normal working hours, or those with normal working hours but whose pay varies with the amount of work done, or according to the time of the work.

From April 2020, the holiday pay reference period increased from 12 weeks to 52 weeks for these workers. Employers will be required to look back at the previous 52 weeks where a worker has worked and received pay, discarding any weeks not worked or where no pay was received, to calculate the average weekly pay.

Where a worker has been employed for less than 52 weeks, the reference period will be the number of weeks they have been employed.

This could mean big changes and employers are advised to look at their holiday calculations very carefully.


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