Midlands PowerHour - Holiday entitlement and holiday pay 18th October 2022
The recent Supreme Court decision in Harper Trust v Brazel confirmed the correct way to calculate holiday entitlement and holiday pay for part-year workers, casual workers and those with irregular hours.
It confirmed that using the 12.07% basis upon which to calculate holiday entitlement and pay for atypical workers is not in accordance with the provisions for calculating holiday pay under the Working Time Regulations 1998. Though not unexpected, this decision has added an additional layer of complexity to calculating holiday entitlement and holiday pay for workers without ‘normal’ working hours. It has also crystalised potential liability for employers who have used the ‘Percentage Method’ for calculating holiday entitlement and holiday pay.
In this PowerHour we’ll be looking at statutory holiday and holiday pay entitlement, calculating holiday and holiday pay for part-time workers generally, and reviewing the Supreme Court’s decision and its practical implications for employers.