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Supreme Court rules on holiday pay calculations

Published:

The Supreme Court has handed down a major judgment on how holiday pay should be calculated for part-time and “part-year” workers.

The Claimant worked irregular hours and only some weeks of the year. Her employer calculated her holiday pay at 12.07% of her pay for work done, correspondent with a full-time worker’s annual leave expressed as a proportion of their working time. The Supreme Court found that in fact the Claimant’s holiday pay should be calculated by reference to her “weekly pay” under s.224 Employment Rights Act 1996, thus discounting weeks in which she did not work. This will result in her being paid more than 12.07%, meaning that “part-year workers” have a comparatively better paid annual leave entitlement than full-time workers when measured against their actual working time.

Mathew Purchase QC and Nathan Roberts both acted in the case.