Part-year and irregular hours holiday entitlement to be pro-rated from next year - what do academies and maintained schools need to know?
Following consultation earlier this year, the Government has now confirmed significant changes to holiday entitlement for part-year and irregular hours workers.
Since the Supreme Court handed down its judgment in the Brazel case last year, a key area of focus for employers has been part-year and irregular hours workers' holiday entitlement. Following the Government's recent announcement that it will introduce a pro-rata mechanism to calculate holiday entitlement for these workers, Alice Reeve considers what the changes mean for academies and maintained schools.
Reform
The Government has published draft regulations to make a number of changes to the Working Time Regulations, which addresses part-year and irregular hours workers' holiday entitlement. When the Regulations take effect, they will introduce an accrual method to calculate holiday entitlement for part-year and irregular-hours workers, at 12.07% of the hours worked in a pay period. A legal definition of 'part-year worker' and 'irregular hours worker' will also be introduced, and if desired, employers will be entitled to pay rolled-up holiday pay at the statutory rate of 12.07% for these workers.
Timescales
The draft regulations come into force on 1 January 2024. However, the specific regulations that introduce the pro-rata mechanism for part-year and irregular hours workers' holiday entitlement will take effect in respect of leave years beginning on or after 1 April 2024. Most schools should therefore, be looking to make changes where appropriate, to reflect the new law from 1 September 2024, when the new leave year starts.
Next steps
Your School will want to review its contractual arrangements in light of these changes. Be sure to update contracts of employment, consulting with staff as necessary in respect of any proposed changes. If your School incorporates Green Book terms for support, your staff may also wish to consider their position in respect of part 4.12 of the Green Book, which advises topping up holiday pay to 5.6 weeks in light of the Brazel decision. It is worth noting that this part of the Green Book is advisory only, so schools may wish to consider their approach in respect of departing from this guidance and explaining any such departure to staff.
If your school would like individual support and advice as required in respect of these projects, please contact Alice Reeve in our Academies team on 07741 271 363, or complete the form below.