Supreme Court decision: calculating holiday pay for part-year workers

The case of Harpur Trust v Brazel brings clarity on how annual leave entitlement should be calculated for workers engaged on a permanent contract of employment and working irregular hours or for only part of the year. This will affect employed part-year workers.

Ms Brazel was a music teacher in a contract of employment with Harpur Trust (‘the Trust’). This was a zero-hour contract, and work would be performed when there was a demand for Ms Brazel’s services.

Her claim was for unlawful deduction from wages by underpayment of holiday pay, with the view that, as permanent employee she should receive full 5.6 weeks holiday leave, according with the Working Time Regulations 1998 (‘WTR’). Her claim stated that her pay should be calculated in alignment with Section 221- 224 of the Employment Right Act 1996. This means, based in the average income earned immediately 12 weeks prior to her leave.

On the other hand, the employer (The Trust) was following ACAS guidance and calculating her holiday pay in pro-rata.

The Supreme Court confirmed that, as Ms Brazel was in a permanent contract of employment, not a casual worker, Working Time Regulations should prevail, and her claim was successful. This is likely to affect many BRC members who engage with employees in the same manner.

The following briefing document explains in further details the case’s implication for members. The document was prepared by RPC LLP, BRC’s partners Please get in touch with luiza.gomes@brc.org.uk if you would like further information in any area.