Currently, when employers calculate holiday pay for those staff without fixed working hours, for example casual workers, the current reference period is the last 12 worked weeks.
From 6 April 2020, the holiday pay reference period is increasing so that the last 52 worked weeks will need to be taken into account, for those staff who have at least 52 weeks continuous service.
The new 52 week reference period will operate in a similar way to the current 12 week period:
The 52 week reference period will doubtless provide a more accurate calculation for holiday pay as it will be less exposed to short term variations in pay.
Please note however that this change does not resolve the issues being considered in the case of The Harpur Trust v Brazel, namely whether holiday pay and leave may be pro-rated for staff who only work part of the year. We have reported on this case in our article, 'Court of Appeal Determines How to Calculate Holiday for 'Part Year' Workers'. We await the Supreme Court's decisions as to whether the The Harpur Trust is granted leave to appeal.