Scottish Golf and Club Managers Association

Holiday Pay Calculations

An important change came to how holiday pay entitlement is calculated for employees and workers.

Until 1 April this year, average weekly pay for holiday pay purposes was calculated using a twelve-week reference period.

In early 2019 the government stated that this twelve-week reference period punished those who work irregular and fluctuating weekly hours because they would receive less holiday pay after quieter times.

So they introduced new regulations which came into force on 6 April 2020, in amongst all the other fun things that were happening.

Which means that holiday pay now needs to be calculated on average hours worked over 52 weeks.

Weeks are not included in the calculation if they are:

annual leave

sickness absence

nil earnings, or

statutory payments such as paternity pay.

If they have been working for you for longer than 52 weeks but there are weeks with nil earnings, you are expected to go back up to a maximum of 104 weeks to find your 52 weeks of pay reference period.

For new hires who haven’t worked 52 weeks, you should base your holiday pay calculations on the number of pay weeks which are available.

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