Holiday for Irregular Hours Workers
How is holiday calculated for irregular hours workers? Understand the 12.07% accrual method and changes from 2024.
Last updated: 30 January 2025
Irregular hours workers have specific holiday calculation rules that differ from regular employees.
Who Is an Irregular Hours Worker?
Definition (from 2024)
An irregular hours worker is someone:
| Criterion | Detail |
|---|---|
| Hours vary | Each pay period |
| No fixed pattern | Can't predict hours |
| Wholly or mostly | Variable |
Examples
| Worker Type | Likely Irregular? |
|---|---|
| Zero-hours contract | Yes |
| Casual workers | Yes |
| Bank staff | Usually yes |
| Variable shifts | Depends |
| Fixed part-time | Usually no |
Not Irregular Hours
| Worker Type | Why Not |
|---|---|
| Regular part-time | Fixed pattern |
| Full-time employee | Set hours |
| Annualised hours (set) | Predetermined |
The 12.07% Calculation
How It Works
| For Each Pay Period | Calculation |
|---|---|
| Hours worked | × 12.07% |
| = Holiday hours accrued | That period |
Why 12.07%?
| Derivation | Calculation |
|---|---|
| 5.6 weeks holiday | Statutory entitlement |
| ÷ 46.4 working weeks | (52 - 5.6) |
| = 12.07% | Accrual rate |
Example Calculations
| Hours Worked | Holiday Accrued |
|---|---|
| 20 hours | 2.41 hours |
| 40 hours | 4.83 hours |
| 30 hours | 3.62 hours |
Applying the Calculation
Each Pay Period
| Step | Action |
|---|---|
| 1 | Count hours worked |
| 2 | Multiply by 12.07% |
| 3 | Record accrued holiday |
| 4 | Either take as leave or rolled-up pay |
Cumulative Tracking
| Period | Hours Worked | Accrued | Running Total |
|---|---|---|---|
| Month 1 | 80 | 9.66 | 9.66 |
| Month 2 | 60 | 7.24 | 16.90 |
| Month 3 | 100 | 12.07 | 28.97 |
Taking Holiday
Options for Irregular Workers
| Option | How It Works |
|---|---|
| Time off | Take accrued hours as leave |
| Rolled-up pay | Receive 12.07% extra each period |
| Combination | Depends on arrangement |
If Taking Time Off
| Process | Detail |
|---|---|
| Request leave | As normal |
| Deduct hours | From accrued balance |
| Receive pay | For hours taken |
Rolled-Up Holiday Pay
| If Rolled-Up | Process |
|---|---|
| No separate leave pay | Already included |
| Take unpaid time off | When on leave |
| Simpler admin | For variable hours |
Changes from 2024
What Changed
| Before 2024 | From 2024 |
|---|---|
| Complex calculations | 12.07% method |
| Various approaches | Clearer rules |
| Legal uncertainty | More certainty |
Why Changed
| Reason | Detail |
|---|---|
| Simplification | Easier to apply |
| Certainty | Clearer for everyone |
| Harpur Trust case | Addressed issues |
Part-Year Workers
Definition
Workers who work:
| Pattern | Example |
|---|---|
| Only part of year | Term-time only |
| Defined periods | Seasonal work |
| Gaps in work | Regular breaks |
Same 12.07% Rule
| Applies | Same Way |
|---|---|
| To part-year workers | 12.07% of hours |
| Each pay period | Calculation |
| Rolled-up option | Available |
Calculating Holiday Pay Rate
For Time Off
| When Taking Leave | Pay Rate |
|---|---|
| Hours × rate | Normal pay |
| Based on | What you'd earn |
For Rolled-Up
| Each Period | Calculation |
|---|---|
| Basic pay | For hours worked |
| Plus 12.07% | Holiday element |
| On payslip | Show separately |
Record Keeping
What to Track
| Record | Purpose |
|---|---|
| Hours worked | Calculate accrual |
| Holiday accrued | Running total |
| Holiday taken | Balance management |
| Payments | Evidence |
Employer Obligations
| Duty | Detail |
|---|---|
| Accurate records | Hours and holiday |
| Clear payslips | Show breakdown |
| Track entitlement | Ongoing balance |
Common Issues
Calculating Previous Years
| Issue | Approach |
|---|---|
| Before 2024 | Different rules applied |
| From 2024 | 12.07% method |
| Transition | May need advice |
Carrying Over
| Situation | Rule |
|---|---|
| Unused holiday | Carry over rules apply |
| Sick leave | May affect carry over |
| Employment ends | Pay accrued balance |
Variable Pay Rates
| If Pay Varies | Calculate |
|---|---|
| Average rate | For holiday pay |
| Consider | Overtime, commission |
| Reference period | 52 weeks |
Practical Examples
Example 1: Zero-Hours Worker
| Month | Hours | Accrual |
|---|---|---|
| Jan | 50 | 6.04 |
| Feb | 30 | 3.62 |
| Mar | 45 | 5.43 |
| Total | 125 | 15.09 hours |
Example 2: With Rolled-Up Pay
| Pay Period | Basic Pay | Holiday (12.07%) | Total |
|---|---|---|---|
| Week 1 | £300 | £36.21 | £336.21 |
| Week 2 | £200 | £24.14 | £224.14 |
Your Rights
Entitlement
| Right | Detail |
|---|---|
| 5.6 weeks | Statutory minimum |
| Accrued fairly | 12.07% method |
| Paid properly | Correct rate |
| Take leave | Can request |
If Underpaid
| Step | Action |
|---|---|
| Check calculation | Are you accruing correctly? |
| Raise with employer | Query any issues |
| Seek advice | If not resolved |
| Claim | If necessary |
Tips for Workers
Understanding Your Pay
| Check | Look For |
|---|---|
| Payslip | Holiday shown separately |
| Hours worked | Correctly recorded |
| Accrual rate | 12.07% applied |
Keeping Records
| Keep | Why |
|---|---|
| Payslips | Evidence of payment |
| Hours records | Your calculation |
| Holiday taken | Track balance |
Tips for Employers
Getting It Right
| Action | Benefit |
|---|---|
| Use 12.07% consistently | Compliance |
| Show on payslips | Transparency |
| Track balances | Accurate management |
| Explain to workers | Understanding |
Related answers
UK Holiday Entitlement Explained
All UK workers are entitled to 5.6 weeks paid annual leave. Learn how to calculate holiday for full-time, part-time, and irregular hours workers.
Holiday Pay Calculation UK: Employer's Guide
How to calculate holiday pay correctly for all types of workers. Includes irregular hours, part-time, overtime, and commission. Avoid underpayment claims.
Rolled-Up Holiday Pay
What is rolled-up holiday pay? Understand whether it's legal, how it works, and what it means for irregular workers.
Frequently Asked Questions
- How do irregular hours workers accrue holiday?
- From 2024, irregular hours workers accrue holiday at 12.07% of hours worked in each pay period. This replaces the previous complex calculations and makes accrual clearer for zero-hours and casual workers.
- Who counts as an irregular hours worker?
- Workers whose paid hours vary wholly or mostly each pay period, and who don't have a fixed regular pattern. This includes zero-hours contracts, casual workers, and bank staff whose hours genuinely vary.
- What's the 12.07% calculation?
- For each pay period, multiply hours worked by 12.07% to get holiday hours accrued. Example: work 40 hours = accrue 4.83 hours holiday. This can be paid as rolled-up holiday pay or taken as time off.