In February, we highlighted that new holiday pay and entitlement reforms would take effect from 1 April 2024. As part of ensuring compliance with the new rules, employers need to be able to identify part-time workers and staff who work irregular hours. Employers with ‘term-time’ workers need to know that guidance has recently been updated in respect of this group. 

According to the Department of Business and Trade’s guidance on the holiday pay reforms: 

• An ‘irregular-hours worker’ is someone whose hours in each pay period are wholly or mostly variable under the terms of their contract. 
• A ‘part-year worker’ is someone who is only required to work part of the year under their contract and who has periods within the year of at least a week where they are not required to work and are not paid.

Queries had been raised about how the definition of ‘part-year worker’ would apply to ‘term-time’ workers such as teachers. While they may not be expected to work during school holidays, most teachers are paid in equal instalments over the year, so will still be receiving a salary during holiday periods. 

The Government’s guidance has recently been updated to confirm that the regulations can be read as follows: 

“The regulations require that there must be a period of at least one week ‘for which they are not paid’ which means that it would still be possible for a worker to be paid ‘during’ that period so long as there is no expectation of them working in that period and nor are they receiving payment ‘for’ that period.” 

This means that teachers can be part year workers, despite being paid in equal instalments over the year, because there are still periods in the year when they are not required to work.  

This article reflects the position at the date of publication shown above. If you are reading this at a later date you are advised to check that that position has not changed in the time since.   

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