Holiday Pay for Irregular Hours: The 12.07% Rule and Rolled-Up Holiday Pay (UK 2026)
Irregular-hours and part-year workers in the UK accrue holiday at 12.07% of hours worked each pay period, capped at 28 days, and employers may pay it as rolled-up holiday pay of 12.07% on each payslip for leave years from 1 April 2024. Worked example and record-keeping rules.
Irregular-hours and part-year workers in the UK build up holiday at 12.07% of the hours they actually work in each pay period, and employers may pay their holiday as rolled-up holiday pay: an extra 12.07% on every payslip instead of paying when the holiday is taken. These rules apply to leave years starting on or after 1 April 2024 under the Working Time Regulations 1998, and they cover most zero-hours, casual and bank staff (as of 2026).
In short, every 100 hours worked earns about 12 hours of paid holiday, capped at 28 days a year. You either pay it when it's taken or add 12.07% to each pay run.
Who counts as an irregular-hours or part-year worker?
The Working Time Regulations (regulation 15F) define two groups:
| Group | Legal test (regulation 15F) | Typical examples |
|---|---|---|
| Irregular-hours worker | The paid hours they work in each pay period are, under their contract, "wholly or mostly variable" | Zero-hours, casual and bank staff; shift workers paid only for hours offered |
| Part-year worker | Their contract requires them to work only part of the year, with periods of at least a week when they don't work and aren't paid | Term-time-only staff, seasonal workers |
Acas notes that zero-hours, casual and bank workers are usually irregular-hours workers. A predictable pattern does not qualify: Acas's example of someone on a fixed rotation of 15 and 20 hours a week is not an irregular-hours worker, because the hours are set by the contract. Regular part-timers keep the usual pro-rata entitlement (see how to calculate pro-rata holiday entitlement).
When do the 2024 rules apply to my workers?
They apply from the start of the first leave year beginning on or after 1 April 2024. For leave years that began on or before 31 March 2024, GOV.UK says entitlement did not have to be accrued on hours worked. In practice:
- Leave year starting 1 April: the rules applied from 1 April 2024.
- Leave year running January to December: the rules applied from 1 January 2025.
By 2026 every UK employer in England, Wales and Scotland is on the new rules. The regulations shown here extend to Great Britain; Northern Ireland has its own working time law.
How is the 12.07% holiday accrual calculated?
Holiday accrues on the last day of each pay period at 12.07% of the hours worked in that period (regulation 15B). Where 12.07% comes from: the 5.6 weeks of statutory holiday as a share of the remaining 46.4 working weeks in a year (5.6 ÷ 46.4 = 12.07%).
The rules that trip people up:
- Rounding. A part hour of less than 30 minutes counts as zero; 30 minutes or more counts as a full hour (regulation 15B(5)).
- Cap. A worker can't accrue more than 28 days of leave in a leave year under this method.
- Taken from the next pay period. GOV.UK says the leave can be taken from the next pay period. Acas adds that you may let workers take holiday before it has accrued.
- More than the statutory minimum. 12.07% matches 5.6 weeks. If the contract gives more holiday, Acas says the employer will need to adjust the percentage.
- Sickness and statutory leave. During sick leave or maternity, paternity and other statutory leave, holiday keeps accruing at 12.07% of the worker's average weekly hours over the previous 52 weeks (regulation 15C). Weeks with zero hours count in that average; weeks on sick or statutory leave don't.
GOV.UK's own example: a weekly-paid worker who does 30 hours earns 30 × 12.07 ÷ 100 = 3.621, rounded to 4 hours of leave. Acas's monthly example: 70 hours in June gives 8.45 hours, rounded to 8 hours.
Worked example: a zero-hours worker over four weeks
Priya is a weekly-paid zero-hours worker on £14.00 an hour. Here is what she accrues and what rolled-up holiday pay would add:
| Week | Hours worked | 12.07% of hours | Holiday accrued (rounded) | Pay for work | Rolled-up holiday pay (12.07%) |
|---|---|---|---|---|---|
| 1 | 30 | 3.62 h | 4 h | £420.00 | £50.69 |
| 2 | 12 | 1.45 h (27 min part hour) | 1 h | £168.00 | £20.28 |
| 3 | 0 | 0 h | 0 h | £0.00 | £0.00 |
| 4 | 22 | 2.66 h (39 min part hour) | 3 h | £308.00 | £37.18 |
| Total | 64 | 8 h | £896.00 | £108.15 |
If you don't use rolled-up pay, Priya takes her 8 hours as paid holiday and you pay her a normal rate for them. If you do use it, she has already been paid the £108.15, so when she takes the 8 hours she gets nothing extra for that time. Either way she is entitled to the time off.
What is rolled-up holiday pay, and can I use it in 2026?
Rolled-up holiday pay is allowed only for irregular-hours and part-year workers, and only for leave years starting on or after 1 April 2024 (regulation 16A). It is optional. The conditions:
- Rate: at least 12.07% of the worker's pay for work done in the pay period. "Pay" means everything that counts towards a week's pay, not just basic hourly pay (regulation 16A(9)).
- Timing: paid at the same time as the pay for that work.
- Payslip: the holiday pay amount must be shown on the payslip for that period. Acas says it should appear as a separate payment.
- Holiday still has to be taken. You must still make sure workers can take their holiday, and encourage them to. Acas warns that rolled-up pay can put people off taking time off.
- Sickness and statutory leave. For pay periods spent off sick or on statutory leave, you pay the worker's average rolled-up holiday pay per pay period over the previous 52 weeks. Acas's example: Pat averaged £36 a week in holiday pay, so Pat gets £36 for each week of a two-month sickness absence.
Acas recommends consulting workers before you switch and checking whether contracts need to change.
How do I calculate holiday pay if I don't roll it up?
Pay a week's holiday at the worker's average weekly pay over the previous 52 weeks in which they were paid. Skip weeks with no pay and go back further, up to a maximum of 104 weeks, according to GOV.UK. Someone with less than 52 weeks of pay is averaged over the full weeks they have worked. Unlike regular-hours staff, irregular-hours and part-year workers get all their statutory leave at this normal rate, not just the first four weeks.
What holiday records do I need to keep?
Since 6 April 2026, employers must keep records adequate to show they have complied with workers' annual leave and holiday pay entitlements, including the 12.07% accrual. The records must be kept for six years from the date they were made (regulation 16B, inserted by the Employment Rights Act 2025). The law leaves the format up to you, so in practice this means recording, per pay period:
- hours worked and the hours of holiday accrued
- holiday taken, in hours, and any carried over
- holiday pay, or rolled-up pay, paid and how it was worked out
- any payment in lieu when someone leaves
Because entitlement accrues in hours, record leave in hours too. Converting a four-hour shift into "half a day" throws off the balance for someone with no fixed working day. Carry-over matters as well: if rolled-up pay you owed wasn't paid, GOV.UK says the full untaken entitlement carries over. Our guide to holiday carry-over and leave accrual covers the general rules.
Payroll or timesheets work out the 12.07%; booking the time off is a separate job. In Absenca, a leave type can accept requests in hours, in 15, 30 or 60-minute steps, so a four-hour absence is recorded as four hours. Approvals and the history of each request sit alongside it. The Free plan covers up to 10 people. For salaried staff, the annual leave calculator gives a day-based figure.
FAQ
How much holiday does a zero-hours worker get in the UK?
Usually 12.07% of the hours they work in each pay period, up to a maximum of 28 days a year (5.6 weeks). 100 hours worked earns about 12 hours of holiday.
Is rolled-up holiday pay legal in 2026?
Yes, but only for irregular-hours and part-year workers, for leave years starting on or after 1 April 2024. It must be at least 12.07% of pay, paid with each pay run and shown on the payslip. It is not allowed for staff on regular hours.
Do irregular-hours workers get bank holidays on top?
Not automatically. GOV.UK says bank holidays don't have to be given as paid leave, and employers can count them within the statutory 5.6 weeks.
Does holiday accrue while an irregular-hours worker is off sick?
Yes. It accrues at 12.07% of their average weekly hours over the previous 52 weeks, for each week of sick or statutory leave.
What happens to accrued holiday when they leave?
Untaken statutory holiday must be paid in lieu when the job ends, even after a dismissal for gross misconduct, according to GOV.UK. Pay in lieu isn't allowed while they are still employed.
This is general guidance on the UK rules as of 2026. Rules change and individual situations differ, so check the official GOV.UK and Acas guidance before making decisions.