Holiday pay

October 2, 2019

The Court of Appeal has held that permanent workers on a part-year contract, for example term-time only, should not have their 5.6 weeks’ statutory holiday entitlement under the Working Time Regulations pro-rated to reflect the fact that they do not work for the full year.

 

Legislation requires a worker’s holiday pay to be calculated as a week's pay for each week of leave and, if a worker does not have normal working hours, a week's pay is taken to be the worker's average weekly pay in the 12 weeks before the calculation date (which is the first day of the relevant period of leave excluding any weeks in which no remuneration was payable). This reference period is due to be increased to 52 weeks with effect from 6 April 2020.

 

The government has now updated its guidance for employers and employers who have been using 12.07% of earnings as a basis for the calculation of holiday pay for casual workers may want to carry out a review of this and obtain further advice.

 

 

 

 

(The Harpur Trust v Brazel)

 

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