Work out the holiday a zero-hours worker builds up each pay period: 12.07% of the hours they work, rounded to a whole hour the way the law requires, plus their rolled-up holiday pay.
For leave years starting on or after 1 April 2024, irregular-hours and part-year workers (which covers most zero-hours staff) build up holiday at 12.07% of the hours they work in each pay period, rounded to a whole hour: half an hour or more rounds up, less is dropped. They can build up at most 5.6 weeks a year, capped at 28 days. Holiday pay is either their average pay over the last 52 weeks in which they were paid, paid when they take the leave, or rolled-up holiday pay: an extra 12.07% of their pay on every payslip, shown as its own line.
Worked example: 30 hours in a weekly pay period at £12.71 an hour
4 hours of paid leave earned this week, or £46.02 rolled-up holiday pay on top of £381.30.
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The Harpur Trust v Brazel ruling and the April 2024 reforms changed how this works. Here's what the law now requires.
The 12.07% accrual rate is derived by dividing the statutory minimum of 5.6 weeks' holiday by the remaining 46.4 working weeks in the year (5.6 ÷ 46.4 = 12.07%). For every hour a zero-hours worker works, they accrue 12.07% of that time as paid leave, worked out per pay period and rounded to a whole hour (half an hour or more rounds up). For leave years starting on or after 1 April 2024 it is the statutory accrual rate for irregular-hours and part-year workers, and employers may pay it as rolled-up holiday pay: a 12.07% uplift on each payslip.
The Working Time Regulations were amended in 2023 to formally permit rolled-up holiday pay for irregular-hours workers and part-year workers. Rolled-up holiday pay means the 12.07% holiday entitlement is included in the worker's hourly rate, rather than paid separately when leave is taken. To be lawful, the pay must be calculated correctly, clearly identified on payslips, and not used to reduce effective hourly pay below the NMW. Workers must still be permitted to take time off — they simply receive their holiday pay in advance rather than at the point of taking leave.
Holiday pay for zero-hours workers must reflect 'normal remuneration' — not just the contracted or basic hourly rate. Where a worker regularly receives additional payments (shift premiums, productivity bonuses, or regular overtime), these must be factored into holiday pay calculations. The relevant reference period is the last 52 weeks in which the worker received pay (ignoring weeks with no pay). Using only the base rate without accounting for variable supplements can result in underpayments, which are recoverable as unlawful deductions from wages.
Zero-hours workers are entitled to bank holidays in proportion to their hours worked — they are not automatically entitled to 8 bank holidays simply because they exist. A worker who works every day will be entitled to bank holiday time proportionate to their accrued entitlement. If the employer closes on bank holidays and expects the worker to take those days from their holiday entitlement, this must be reflected in the contract. Bank holidays cannot be excluded from total holiday entitlement without providing an equivalent number of alternative days.
The Supreme Court's ruling in Harpur Trust v Brazel (2022) changed the holiday pay landscape for part-year workers (those with a permanent contract but who only work for part of the year, such as term-time-only staff). The Court held that the 12.07% method cannot be used for these workers — they are entitled to 5.6 weeks' leave calculated using a 52-week reference period that ignores weeks with no pay. This means term-time workers may receive proportionally more holiday than part-time workers — a counter-intuitive but legally correct outcome.
Following the Harpur Trust ruling, the government amended the Working Time Regulations 1998 in 2023 to create a specific regime for 'irregular-hours workers' and 'part-year workers'. From April 2024, these workers' holiday entitlement is calculated on an accrual basis at 12.07% of hours worked in each pay period, rather than using the 52-week average method. The new rules apply to leave years starting on or after 1 April 2024 and cover part-year workers as well as irregular-hours workers, so for those leave years term-time staff also accrue at 12.07% of hours worked. Harpur Trust still governs leave years that began before then.
Zero-hours workers' accrued holiday entitlement is subject to the same carryover rules as other workers. Statutory leave (the 4-week EU entitlement) can be carried over where a worker was unable to take it due to sickness or family leave, and in certain circumstances where the employer failed to facilitate it. Additional statutory leave (the 1.6 weeks) can be subject to a use-it-or-lose-it policy if the worker had a genuine opportunity to take it. Rolled-up holiday pay arrangements should be reviewed to ensure accrued leave is still trackable and carryover rules are properly applied.
Accurate time records are essential for zero-hours holiday entitlement compliance. Because entitlement is based on hours worked, employers must retain records of all hours worked per pay period, the holiday accrual calculated on those hours, any holiday pay paid (whether rolled-up or separately), and any leave taken. Without these records, verifying compliance or defending a tribunal claim is effectively impossible. HMRC and the Employment Tribunal can draw adverse inferences from absent or incomplete records — the burden shifts to the employer to disprove underpayment.
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Jordan Ingoe, CLI ManchesterCommon questions about holiday entitlement and pay for zero hours contract workers.
Last checked against GOV.UK: 2 October 2026
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