The Supreme Court has upheld the Court of Appeal’s judgment that holiday pay for permanent staff who only work part of the year, such as term-time workers, should get a full 5.6 weeks’ annual leave a year, with pay calculated over a 52-week average, rather than on a basis of 12.07%. The same principles apply to workers on zero-hours, variable-hours or casual contracts.
This case also rejected the use of 12.07% of hours worked in calculating leave and pay entitlement, rendering the practice of ‘rolled-up holiday pay’ unlawful.
More information is available at https://www.supremecourt.uk/cases/docs/uksc-2019-0209-judgment.pdf. If you are concerned that you may not be calculating holiday pay correctly, please contact us here