Q&As

At what rate is the holiday pay of a zero hours worker calculated if the worker is on a national minimum wage rate and wants to take holiday, and they have turned 18 years’ old part way through the period when holiday entitlement accrued?

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Published on LexisPSL on 30/01/2020

The following Employment Q&A provides comprehensive and up to date legal information covering:

  • At what rate is the holiday pay of a zero hours worker calculated if the worker is on a national minimum wage rate and wants to take holiday, and they have turned 18 years’ old part way through the period when holiday entitlement accrued?

A zero hours employee or worker who has an over-arching or 'umbrella' contract with their employer will accrue holiday entitlement during the whole of the time that contract is in existence, whether or not they are actually doing work under it.

In relation to holiday taken, the employee or worker must be paid at the rate of a week's pay for each week of leave. The sections of the Employment Rights Act 1996 (ERA 1996) regarding a week's pay apply for the purposes of calculating a week's pay for each week of leave, subject to modifications contained in the Working Time Regulations 1998, SI 1998/1833, reg 16(3).

As a zero hours employee or worker will have no normal working hours, a week's pay is calculated under ERA 1996, s 224 as the ave

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