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Holiday Pay


The Government has amended the Working Time Regulations to remove the thirteen-week qualifying period for holiday pay. The amendments are effective from 25 October 2001. 

Under the old regulations, holiday pay accrued from the first day of employment but the employee was not eligible for it until they had worked thirteen weeks. Consequently, if the employee left within the first thirteen weeks then no holiday pay was due.

Under the new regulations, an employee has the right to one twelfth of the annual holiday entitlement for each month worked, rounded to the nearest half day. Therefore, from the first month onwards, holiday pay is due.

The Regulations still require that holiday should be taken and not paid in lieu, except when the employee leaves the employer, or be allowed to carry over to the next holiday year. These Regulations only apply to the statutory minimum of four weeks per year, which is inclusive of the eight Bank/Public holidays.

As a result of this change, any conditions of employment that state that an employee is not entitled to outstanding holiday pay if they leave within the first three months of employment should therefore be changed since this will no longer be legal, unless it only applies to holiday in excess of the statutory minimum.

November 2001

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