pay-and-leave
Holiday entitlement and pay for irregular-hours workers
Calculate and record holiday entitlement and holiday pay for irregular-hours, part-year and zero-hours workers using current UK rules.
Irregular-hours and part-year workers are entitled to paid holiday, but their accrual and pay calculations differ from a straightforward five-day-week employee. Employers need accurate hours and pay records, a defined holiday year and contract wording that matches the payroll method.
Identify the worker correctly
Do not assume everyone on a zero-hours contract is automatically an irregular-hours worker for every legal purpose. Check the statutory definitions and the actual arrangement. A worker whose paid hours are wholly or mostly variable may be irregular-hours, while a part-year worker is required to work only part of the year with periods of at least a week when no work is required and no pay is received.
The label in the contract is not enough. Review the working pattern, pay periods and obligations. If hours have become regular, consider whether the contract and payroll setup should be updated.
Calculate entitlement for each pay period
For leave years beginning on or after 1 April 2024, statutory leave for qualifying irregular-hours and part-year workers generally accrues at 12.07% of hours worked in each pay period, subject to statutory rounding and accrual limits. Special calculations apply during sickness and statutory family leave.
Use the actual hours in the relevant pay period. Apply the current rounding rule and carry the result into the worker's leave record. Do not calculate annual entitlement once using an assumed schedule if the statutory method requires pay-period accrual.
The 12.07% figure calculates entitlement, not automatically the amount of holiday pay. Keep those questions separate. The government holiday entitlement calculator can help, but the employer remains responsible for accurate source data.
Calculate holiday pay
Holiday pay should reflect the applicable definition of normal remuneration and the worker's pay pattern. For a worker without normal working hours, a 52-week paid reference period is generally used, skipping weeks without pay and looking back further where required, subject to the statutory limit.
Include the pay elements required by current law. Overtime, commission and allowances may need consideration depending on regularity and the type of statutory leave being taken. Keep a worksheet showing weeks included, excluded and the resulting average.
If the worker has fewer than 52 paid weeks, use the available complete paid weeks in line with the rules. Do not insert zero-pay weeks merely to reduce the average.
Rolled-up holiday pay
Employers may use rolled-up holiday pay for qualifying irregular-hours and part-year workers where current rules permit it. It must be calculated at the prescribed rate and shown separately on the payslip. Paying an unexplained higher hourly rate is not a compliant substitute.
Workers must still be encouraged and allowed to take leave. Rolled-up pay is a payment method, not permission to work without rest. The contract and handbook should explain how leave is requested and recorded.
Carry-over and sickness or family leave
Carry-over rights can arise where a worker cannot take leave because of sickness or family leave, or where the employer did not recognise the right, provide a reasonable opportunity, encourage leave and warn that entitlement could be lost. Irregular-hours and part-year rules have specific limits, so check current guidance.
Manager reminders should be issued before the leave-year end. A blanket “use it or lose it” statement is risky where the employer cannot show that workers could realistically take leave.
Records and contract wording
Retain records showing hours worked, entitlement accrued, leave taken, pay periods, average-pay calculations, rolled-up amounts and carry-over. Reconcile the HR system with payroll regularly.
The written terms should state the holiday year, statutory and additional entitlement, request process, calculation approach, carry-over and termination treatment. Avoid hard-coding a method that does not apply to the worker's pattern.
Download the irregular-hours holiday worksheet to record pay-period accrual and supporting data. Read the broader holiday entitlement and holiday pay guide for regular-hours principles.
Build aligned contract and handbook documents and confirm the final holiday wording with payroll before issue.
This guide is general information, not legal or payroll advice. Definitions and calculations are fact-sensitive; check current GOV.UK guidance for the applicable leave year.
