Unfortunately yes it does. But they do get the holiday entitlement 'pro rata' depending how many days they work.
Holiday is worked out on a 5 day week, so if they work one day per week then only one fifth of holiday entitlement is allowed, therefore 4 days paid etc.
I think this law is very tough on employers. We take someone on, train them in Health & Safety, give them a few weeks to settle in and get up to speed, then find out they are completely incapable of doing the job, then after a few weeks we owe them holiday pay!! Crazy.
I think that during a short trial period of up to 3 months that holiday pay shouldn't be applicable