Following last year's Supreme Court judgment in the Brazel case, the Government consulted on proposals to reform holiday entitlement for part-year workers. The consultation sought views on a proposal to introduce a 52-week holiday entitlement reference period for part-year and irregular hours workers. The aim of the proposal was to ensure holiday entitlement is directly proportionate to the time a part-year or irregular hours worker spends working.
The Government has now published its response to the consultation. The response confirms that the Government will proceed with legislation to introduce a pro-rata mechanism to calculate part-year workers' holiday entitlement. However, in light of concerns raised about the administrative burden of the original proposed 52-week reference period, the Government has confirmed it will pursue an alternative, more straightforward approach.
The Government has brought forward draft regulations to achieve the following:
The draft regulations brought forward by the Government are due to come into force on 1 January 2024 and will change part-year workers' holiday entitlement for leave years beginning on or after 1 April 2024. Until then, part-year and irregular hours workers remain entitled to 5.6 weeks' unreduced statutory holiday. Employers may wish to take this opportunity to plan their next steps in respect of staff communications and any process necessary to give effect to these changes when they come into force.