Holiday pay reference period adjustment
As of 6 April 2020, the holiday pay reference period will increase from 12 weeks to 52 weeks. This ensures workers in seasonal work or with abnormal working hours, receive the paid holiday to which they are entitled.
Under the current law, the calculation of holiday pay can be complicated, especially for those with variable hours and variable rates of remuneration.
Under the new law, employers will be required to look back at the previous 52 weeks where a worker has worked and received pay, disregarding any weeks not worked or where no pay has been received, to calculate the average weekly pay.
If the worker has been employed for less than the 52 weeks, the holiday reference period is the number of weeks for which the worker has been employed.
New parental bereavement law
There is no current law relating to bereavement leave and pay for parents.
However, on 23 January 2020 it was confirmed that the Parental Bereavement (Leave and Pay) Act 2018 will be coming into force. When it comes into force from 6 April, bereaved parents will be entitled to two weeks of leave following the loss of a child under the age of 18, or a still birth after 24 weeks of pregnancy.
Separate regulations will detail the new entitlement and those who will qualify. Bereaved parents will be entitled to take their leave in either one two-week block or two separate blocks of one week. The leave must be taken before the end of the period of at least 56 days beginning with the date of the child’s death.
Bereaved parents employed with a minimum of 26 weeks’ continuous service will also be entitled to receive statutory parental bereavement pay. However, those with less than 26 weeks’ continuous service will be entitled to two weeks of unpaid leave.