Q&As

To calculate a zero hour worker's pay a 52-week reference period should be considered. Should any weeks a zero hours worker was on furlough be discounted in this 52-week reference period or should weeks on furlough be counted at the 80% rate they've been paid?

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Published on LexisPSL on 10/02/2021

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

  • To calculate a zero hour worker's pay a 52-week reference period should be considered. Should any weeks a zero hours worker was on furlough be discounted in this 52-week reference period or should weeks on furlough be counted at the 80% rate they've been paid?

To calculate a zero hour worker's pay a 52-week reference period should be considered. Should any weeks a zero hours worker was on furlough be discounted in this 52-week reference period or should weeks on furlough be counted at the 80% rate they've been paid?

For information:

  1. on how to calculate a week’s pay, see Practice Note: Calculating a week's pay

  2. on calculating holiday pay, see Practice Note: Holiday pay

  3. on zero hours contracts, see Practice Note: Zero hours contracts

  4. on the Employment Rights Act 1996 (Coronavirus, Calculation of a Week’s Pay) Regulations 2020 (Week’s Pay Amendment Regs 2020), SI 2020/814, see Practice Note: Coronavirus Job Retention Scheme—right to statutory redundancy and other termination payments

  5. on the extended Coronavirus Job Retention Scheme (CJRS), see Practice Note: Coronavirus Job Retention Scheme (extended version 1 November 2020 to 30 April 2021)

The concept of ‘a week’s pay’, calculated in accordance with sections 220–229 of the Employment Rights Act 1996 (ERA 1996), is important for a number of statutory employment rights, including calculation of statutory holiday pay under the Working Time Regulations 1998 (WTR 1998), SI 1998/1833.

Different methods of calculating a week’s pay apply, depending on the pattern of the working hours of the employee concerned, in particular whether the employee has:

  1. normal working hours, or

  2. no normal working hours

See the section of Practice Note: Calculating a week's pay entitled

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