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UK: Harpur Trust v Brazel and Holiday Pay
Friday, August 5, 2022

In the UK, and most of Europe, employees have statutory rights to holiday leave and the question of holiday pay (and how to calculate it) has been a challenging issue for a long time.  The Supreme Court in London has provided much-needed clarity by ruling in Harpur Trust v Brazel that holiday pay for part-year workers, including term-time or casual workers, should not be pro-rated.  It has been confirmed that such workers are entitled to 5.6 weeks’ statutory holiday pay, the same as employees who work full-time all year.  This decision will have a significant impact on employers of part-year workers who have been pro-rating holiday pay using the now discredited “12.07% method”.  Going forward, employers will now need to average holiday pay over a 52-week reference period and change their policies to reflect this decision.

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