Government reforms (6):  Guidance – holiday pay

What do we already know?

We updated you in our April Newsletter Government reforms (2): April changes – are you ready? that from 6 April 2020 the period over which average holiday pay is calculated for employees without normal working hours, or who have variable remuneration, is being extended from 12 to 52 weeks.

What’s new?

In light of these changes, the Government guidance (available here) on how to calculate holiday pay for workers without normal working hours, has been updated.

The Government’s guidance includes helpful examples of how to use the new reference periods, and how employers should apply those reference periods to workers without fixed hours or fixed rates of pay.