April 2020: Holiday pay reference period increasing to 52 weeks
27 January 2020
- From 6 April 2020, the pay reference period used for calculating a week’s pay for holiday pay purposes will be increased from 12 to 52 weeks.
- This will affect any workers who do not have fixed hours or pay.
- This will ensure that, for those in seasonal or atypical roles, their holiday pay is representative to their average earnings throughout a year and so, they are not penalised by seasonal fluctuations.
- Government has also clarified that the holiday pay reference period should include as many whole weeks of pay information as are available (if less than 52 weeks).
- For those individuals paid monthly, but where their pay varies (for example, depending on the amount of work done) their employer will need to use the holiday pay reference period.
Aspire Comment
It’s becoming clear that HMRC have not taken sufficient action to inform industry about the upcoming changes due to be implemented in 2020. Employees who fail to receive the correct amount of holiday pay will have the right to bring a claim at employment tribunal.
If you’re concerned about any upcoming changes and how they might affect your business, call us on 0121 445 6178 to speak to an advisor today.
Join us at one of our “Operation Compliance” seminars where the good work plan and other key topics affecting the industry will be discussed at length. These will be held on Tuesday 11 February 2020 at The Holiday Inn, Coram Street, Bloomsbury, London, WC1N 1HT or Thursday 13 February 2020 at The Belfry Hotel & Resort, Lichfield Road, Sutton Coldfield, B76 9PR.
Tickets are now on sale. Book early to avoid disappointment. Places will be allocated on a first come first served basis.
To purchase a ticket for the London venue, please click here.
To purchase a ticket for the Birmingham venue, please click here.