UK Supreme Court Gives New Holiday Pay Ruling

July 2022
Region: Europe

The Supreme Court has given its decision in Harper Trust v Brazel and confirmed that “part-year” workers are entitled to have their statutory leave and pay calculated in line with the relevant provisions in the Working Time Regulations 1998 (WTR) and not the widely used 12.07% Method.

This decision will be of most interest to employers in the education sector, where it is more common to have individuals who only work and are paid for part of the year but have a contract in place throughout it. It is possible, however, that it may prompt challenges from other workers who work irregular hours and currently have their pay calculated in accordance with the 12.07% Method, though in most cases the monetary difference between the two is likely to be marginal in the extreme.