From 6 April 2020, the holiday pay reference period has increased from 12 to 52 weeks[footnote 2]. The reference period is the relevant timescale over which the calculation of holiday pay takes place. This increase is to ensure holiday pay more fairly reflects average pay for workers whose pay varies across the year, as occurs for many casual, seasonal workers. Where a worker has been employed by their employer for less than 52 weeks, the reference period is shortened to the number of weeks of their employment. The reference period must only include weeks for which the worker was actually paid. It must not include weeks where they were not paid as they did not work. This principle has not changed under new legislation. The legislation also introduces a cap on how far back the reference period may go, 104 weeks. Where this gives less than 52 weeks to take into account (that is, where the worker has many weeks without any remuneration), the reference period is shortened to that lower number of weeks. Examples If a worker started work 30 weeks ago, employers should use pay data from as many of those weeks that the worker was paid to calculate the worker’s holiday pay and provide a fair rate of pay. The employer should use the method set out in Holiday pay: the basics to calculate a week’s holiday pay. If an employer has counted back over 104 weeks and has only found 40 weeks of pay data for a worker, then the employer should use these 40 weeks of pay data. The new 52-week reference applies to holiday pay which is due on or after 6 April 2020.