LEGAL UPDATE 1 - Holiday Pay
Posted on 20th October 2022 at 10:19
UK Supreme Court hands down judgment in Harpur Trust v Brazel
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”.
What should you do now?
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:
Whether they have any staff affected
How do they calculate holiday pay for those staff
Whether staff contracts, handbooks or payroll procedures need to change to reflect the updated position.
Please contact us at email@example.com for further advice and guidance.
Please see our Legal Update 2 - Right-to-Work here
Tagged as: Legal Update; HR; Holiday Pay; Part-Time
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