Casual seasonal workers and holiday pay

A casual worker is entitled to paid holiday, and their entitlement pay is calculated pro rata by reference to the hours they work. The law on this calculation has developed and recently become complex. If a casual worker believes they have not been paid correctly for their holiday entitlement, they may bring a claim in the employment tribunal for money they argue is owed to them.

It is highly likely a seasonal worker will work for a period of time without taking any holiday, and their accrued holiday entitlement will need working out at the end of the work period, then the holiday pay calculated. The amount is based on their average weekly pay in the 12 weeks before the date of their holiday, or the number of weeks they have been employed if less than 12 weeks (the reference period). The calculation of holiday pay for casual workers is complex, but in simple terms, their average pay over that reference period prior to the end of the contract is calculated, and this average pay will include elements of basic pay, over time, bonus, etc.

For further advice on this evolving area of law and for our regular updates on employment law, please contact us.