Following a few years of uncertainty, the Government has released guidance on what constitutes a Part Year Worker (PYW). A PYW is a worker who, under the terms of their contract, is required to work only part of that year. This means that there must be at least one week during the year when they are contractually not required to work, and for which they are not to be paid.
Why is this important?
This provides employers with an avenue to confidently decide on how much holiday a PYW should receive. Holiday entitlement for irregular hours and PYW’s will be calculated as 12.07% of actual paid hours worked, based on the standard 5.6 week leave entitlement. If people work parts of an hour, this can be rounded up or down (30 minutes or above rounded up, below 30 minutes rounded down).
This comes into effect for holiday years beginning on 1st April 2024 onwards. This means that if your holiday year started prior to this date, for example 1st January 2024, this is not applicable to your company until the next holiday year starts. In this example, this rule will therefore apply from 1st January 2025. If your holiday year started 31st March 2024 or earlier, then you must follow the previous rule, which is that PYW’s should receive the full 5.6 weeks’ paid holiday.
If you require any advice on this subject, or any other area of Employment law, please contact the Employment team at employment@glaisyers.com.
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