LEGAL UPDATE 1 - Holiday Pay

On 20 July 2022, the UK Supreme Court finally handed down its decision in this significant case for employers. Upholding the Court of Appeal, they have now provided us with a definitive answer to the question - should part-year workers (i.e., those who are not required to work every week, such as term time only employees on permanent contracts, such as in Brazel, or workers who are not asked to work every week) have their holiday pro rata, to reflect they don't work every week of the year, like full-time employees? 

 

The answer, the Supreme Court says, is no.  

 

They should get the full 5.6 weeks that those working 52 weeks a year get. Even, in an example used by the court in their findings, they only work for two or three weeks in that year. 

 

 

Part-year workers are entitled to 5.6 weeks of holiday each year – irrespective of how many weeks they actually work in the year. 

 

The “Percentage method” of calculating holiday pay cannot be relied upon. 

 

This decision will impact any organisations that employ staff on a term-time, part-year, zero-hours or casual basis. The rules apply to employees and the wider category of “workers”. 

 

 

Given the publicity that this case has generated, we believe that employees are more likely to raise concerns than ever before. We advise employers to review: 

 

 

Please contact us at hello@humberhrpeople.co.uk for further advice and guidance.