Zero-hours workers are entitled to 12.07% of hours worked as paid holiday (Working Time Regulations 1998, reg.15B; effective for leave years beginning on or after 1 April 2024) — equivalent to the 5.6-week statutory minimum. From 1 April 2024, employers may also use rolled-up holiday pay for these workers, adding 12.07% of hours worked as holiday pay to each pay packet and itemising it separately on the payslip. Holiday pay must be calculated on average pay over a 52-week reference period. Updated June 2026.
Source: Working Time Regulations 1998, reg.13 and reg.15B (as inserted by Working Time (Amendment) Regulations 2023); acas.org.uk/irregular-hours-and-part-year-workers.
What the law says
All workers — including those on zero-hours contracts — have the right to 5.6 weeks of paid annual leave under the Working Time Regulations 1998, regulation 13. For irregular-hours and part-year workers, how that entitlement accrues and is paid was reformed from 1 April 2024 by the Working Time (Amendment) Regulations 2023.
The reform introduced regulation 15B, which replaced the previous position (following the Supreme Court's Harpur Trust v Brazel decision) with a statutory accrual method: 12.07% of hours worked in each pay period. Source: gov.uk/holiday-entitlement-rights.
How holiday accrues on a zero-hours contract
The 12.07% accrual rate
For every hour worked in a pay period, an irregular-hours worker accrues 0.1207 hours of statutory holiday entitlement. This accrual happens at the last day of each pay period, not at the end of the leave year.
Where the 12.07% figure comes from: 5.6 weeks of leave ÷ (52 − 5.6) weeks of work = 5.6 ÷ 46.4 = 12.07%.
Example: A worker completes 30 hours in a weekly pay period. They accrue 30 × 12.07% = 3.62 hours of holiday that week.
When the 12.07% method applies
This method applies only to workers who qualify as irregular-hours workers under reg.15B — broadly, those whose working hours vary completely from pay period to pay period under the terms of their contract. Standard part-time workers with fixed contracted hours do not use this method; they receive 5.6 weeks pro-rated to their contracted days.
The leave year
The leave year starts on the date specified in the employment contract, or 1 October by default. Holiday accrued in a leave year must be used (or, for irregular-hours workers, paid rolled-up) in that year unless carry-over applies.
Rolled-up holiday pay
From 1 April 2024, regulation 15F permits employers to pay rolled-up holiday pay to irregular-hours and part-year workers. Rolled-up pay means the employer adds 12.07% to every pay packet in lieu of taking separate paid leave — the worker is paid for their leave at the time they work, rather than taking it separately.
Requirements for lawful rolled-up pay:
- Must be agreed (explicitly or impliedly) — best practice is a written statement in the contract.
- Must be itemised separately on every payslip as "holiday pay." It cannot be absorbed into a flat hourly rate.
- The worker retains the right to take periods of unpaid leave during the year.
Rolled-up pay remains unlawful for full-time employees and standard part-time employees. Source: acas.org.uk/irregular-hours-and-part-year-workers.
Holiday pay calculation: the 52-week reference period
When a zero-hours worker takes holiday (rather than rolled-up pay), their pay for that holiday must reflect their normal pay over the previous 52 weeks. Only weeks where the worker actually received pay count in the reference — weeks with no work are skipped. Normal pay includes regular overtime and variable elements that are intrinsic to the work.
Example: A worker who typically earns £250/week over the weeks they work (but works only 30 out of 52 weeks) uses those 30 paid weeks as the reference. Their holiday pay rate is £250 per week.
Source: WTR 1998, reg.16; Employment Rights Act 1996, s.224; acas.org.uk/holiday-entitlement.
Calculate your holiday entitlement
Use the free annual leave calculator to work out your holiday entitlement as a zero-hours or irregular-hours worker. The calculator uses the WTR 1998 reg.15B method and the 12.07% accrual rate.
Frequently asked questions
See the FAQ below. For disputes about holiday entitlement or pay on a zero-hours contract, contact ACAS or call the ACAS helpline on 0300 123 1100.
Back to annual leave rights.