Posted Date: 9th January 2024
You may recall our HR update last summer regarding the Harper Trust V Brazel case and part-time working holiday calculations. To summarise, the Supreme Court declared that holiday entitlement for part-year, and those with irregular hours (such as zero hours/causal hours workers) should be 5.6 weeks and not be pro-rated dependent on the amount worked each year.
This meant the previous 12.07% accrual method was no longer valid, which was met with frustration from many who felt it was unfair for part-year workers to receive a full entitlement and the new calculations to work out holiday pay were complicated.
We are pleased to confirm that the Government has legalised the use of the 12.07% method (see example calculations below) as of 1st January 2024, effective from holiday leave years commencing from 1st April 2024 onwards.
(Gov.uk)
12.07% is based on the statutory entitlement of 5.6 weeks’ leave, and the fact that a workers total working weeks in a year is 46.4 weeks (52 weeks in a year, minus 5.6 weeks of leave. 12.07% of 46.4 is 5.6.
If the worker is entitled to more, as specified in their contract of employment, you would need to find the correct figure by following the calculation below:
(total holiday entitlement ÷ remaining working weeks in the year) x 100
For any further support on this topic, please do not hesitate to contact us.