Zero hours contract holiday pay is the question small employers ask most, and the reforms that apply to leave years beginning on or after 1 April 2024 made the answer simpler than it was. A zero hours worker is an irregular-hours worker, and their holiday entitlement accrues at 12.07 per cent of the hours they actually work in each pay period. There is no days-a-week figure to scale, because there are no fixed days. This page sets out the accrual, the two ways to pay for it, and what the record has to hold so the figure can be shown to the worker on request.
Holiday entitlement for zero hours contract workers accrues by the hour
Multiply the hours worked in the pay period by 12.07 per cent and that is the holiday accrued, in hours, for that period. Someone who worked 68 hours in a month accrued about 8.2 hours of holiday. The percentage comes from 5.6 weeks of leave against 46.4 working weeks in the year, and GOV.UK's worked examples are cited below. Keep the accrual per period against the worker rather than recalculating from the start of the year, because a lost timesheet then costs one period rather than the year.
Two ways to pay: on the average when taken, or rolled up
When a zero hours worker takes holiday they are paid at their average hourly rate over the previous 52 paid weeks, times the hours taken. Or the employer can pay rolled up holiday pay, a 12.07 per cent uplift on every payslip shown as its own line, instead of paying when leave is taken. Rolled up pay is lawful for irregular-hours and part-year workers under the reforms; it must be itemised on the payslip, and the worker keeps the right to take the time off unpaid at that point, because the pay has already gone.
Zero hours contract holidays still have to be taken, and recorded
A worker on rolled up pay is still entitled to the time off and the employer should still record what has accrued and what has been taken, because the leave is a rest entitlement and not only a sum of money. The record is hours accrued, hours taken and the balance, per worker, per period. The free calculator on this site works in days a week for regular patterns; for zero hours staff keep hours, and the paid wall chart holds the balance against each person.
Leavers and carry-over on 0 hours contract holiday pay
A leaver is paid for hours accrued and not taken at the leaving date, unless they were on rolled up pay, in which case it has been paid as they went. Accrued holiday that could not be taken because of sickness or family leave carries over; otherwise the policy's carry-over rule applies, and it should say the same thing for zero hours staff as for everyone else, in hours, so the record does not need a second set of rules.
Questions people ask about zero hours contract holiday pay
Do zero hours workers get holiday pay?
Yes. They are workers and entitled to 5.6 weeks of paid holiday, which for irregular hours accrues at 12.07 per cent of hours worked in each pay period for leave years beginning on or after 1 April 2024.
How do I work out holiday for a zero hours worker?
Hours worked in the pay period times 12.07 per cent gives the hours of holiday accrued for that period. Add the periods up for the year's accrual and subtract hours taken for the balance.
Is rolled up holiday pay allowed on zero hours contracts?
Yes, for irregular-hours and part-year workers under the reforms, as a 12.07 per cent uplift itemised on the payslip. The right to take the time off remains.
What rate is a zero hours worker paid for holiday?
If paid when taken, the average hourly rate over the previous 52 paid weeks times the hours of holiday. If rolled up, the uplift replaces it.