The 2022 Supreme Court decision relating to the Harpur Trust v Brazel case was one of the most significant and contentious rulings on holiday pay for many years.
As a result, the Government have announced that they are consulting on the calculation of holiday entitlement received by part-year and irregular hours workers, with a proposal to re-introduce the 12.07% holiday pay ‘top-up’ system which was previously considered to be a go to method for many employers. The 12.07 percentage derives from dividing the full statutory minimum 5.6 weeks’ paid holiday entitlement per year provided for under the Working Time Regulations 1998 by 46.4 weeks, which is the number of working weeks once the 5.6 minimum paid weeks of holiday has been subtracted from a full 52 weeks per year.
The consultation ends at 11:45pm on 9th March 2023 and we eagerly await the publicised conclusion from the Government