2026 UK Employment Law Changes

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Zero-Hours Contract Holiday Calculator

Work out holiday entitlement and rolled-up holiday pay for zero-hours and irregular-hours workers — using the statutory 12.07% method, with the maths shown.

Zero-hours rules are changing in 2027

The Employment Rights Act 2025 gives zero-hours workers the right to guaranteed hours, shift notice, and cancellation pay — expected during 2027. If your business relies on zero-hours contracts, the time to plan is now.

How the 12.07% method works

All UK workers are entitled to 5.6 weeks of paid holiday per year. For workers with no fixed hours, the law converts that into a simple percentage: a year contains 52 weeks, of which 5.6 are holiday, leaving 46.4 working weeks. 5.6 divided by 46.4 is 12.07% — so for every hour a zero-hours worker actually works, they accrue 12.07% of an hour of paid holiday.

For leave years starting on or after 1 April 2024, this accrual method is the statutory approach for irregular-hours and part-year workers. Entitlement is calculated per pay period on hours actually worked, rounded up to the nearest whole hour where the fraction is 0.5 or more (and down where it is less), and capped at 5.6 weeks across the leave year.

Rolled-up holiday pay

Instead of paying holiday when it is taken, employers of irregular-hours and part-year workers may use rolled-up holiday pay: a 12.07% uplift added to the worker's total pay in each pay period. Three conditions apply — the uplift must be calculated on the worker's total pay for the period, it must be shown as a separate itemised line on the payslip, and it must be paid at the worker's normal rate. Workers should still be supported to actually take time off.

Worked examples

Example 1 — monthly-paid bar worker

Amira works 87 hours in a month at £12.71 per hour (the National Living Wage from April 2026). Holiday accrued: 87 × 12.07% = 10.50 hours, which rounds up to 11 hours of paid holiday. If she takes those hours, her holiday pay is 11 × £12.71 = £139.81.

Example 2 — rolled-up holiday pay, weekly payroll

Tom works 20 hours in a week at £13.00 per hour, earning £260 gross. His employer uses rolled-up holiday pay, so his payslip shows a separate line of £260 × 12.07% = £31.38, making £291.38 in total. No further holiday pay is due when Tom takes leave.

Who this calculator is for

This tool applies to irregular-hours workers (including zero-hours and most casual contracts) and part-year workers, for leave years starting on or after 1 April 2024. It is not suitable for employees with regular fixed hours — their entitlement is calculated differently. See our holiday entitlement guide for those rules.

This calculator provides general guidance based on GOV.UK published methodology and does not constitute legal advice. For advice on your specific circumstances, speak to our CIPD-qualified consultants.

Common questions

Is 12.07% the correct rate for zero-hours holiday?

Yes. For irregular-hours and part-year workers, in leave years starting on or after 1 April 2024, holiday entitlement accrues at 12.07% of the hours actually worked in each pay period. The figure comes from the statutory 5.6 weeks of annual leave divided by the 46.4 working weeks that remain in the year (5.6 ÷ 46.4 = 12.07%). Entitlement is capped at 5.6 weeks per leave year.

Is rolled-up holiday pay legal in the UK?

Yes, for irregular-hours and part-year workers, in leave years starting on or after 1 April 2024. Employers can choose to pay a 12.07% uplift on top of normal pay in each payslip instead of paying when leave is taken. The uplift must be calculated on the worker's total pay in the pay period, itemised separately on the payslip, and paid at the worker's normal rate. Workers should still be encouraged to take their leave.

Do zero-hours workers get holiday pay?

Yes. All workers — including zero-hours, casual, and agency workers — are legally entitled to paid holiday from day one. Having no guaranteed hours does not remove the right; it only changes how the entitlement is calculated, which is what this calculator handles.

What is changing for zero-hours contracts in 2027?

Under the Employment Rights Act 2025, zero-hours and low-hours workers are expected to gain the right to a guaranteed-hours contract reflecting the hours they actually work over a reference period, plus rights to reasonable notice of shifts and compensation for shifts cancelled at short notice. These changes are expected during 2027 — employers relying on zero-hours arrangements should start planning now.

More detail: zero-hours contracts and worker rights · calculating holiday pay · 2026 employment law changes

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