The ‘Good Work Plan’ published in December 2018 sets out a way to improve holiday pay arrangements for seasonal workers by extending the reference period from 12 weeks to 52 weeks from 06 April 2020.
This is being brought into force by the Employment Rights (Employment Particulars and Paid Annual Leave) (Amendment) Regulations 2018. The review undertaken by Matthew Taylor highlighted that some workers (particularly seasonal) are not benefiting from their full holiday pay entitlement therefore, to address this the reference period will be increased to 52 weeks which will enable employers to adequately calculate a worker’s average weekly pay.
The 52-week reference period will be a fairer approach for both workers and employers as it will be a better reflection of working hours across the year in order to calculate holiday pay entitlement.
Employers are advised to ensure adequate time-recording in relation to hours and pay is taking place to enable them to look at back dated records when the change comes into force from 06 April 2020.