20 February 2019 Caroline Jones, Employment tax director
The Court of Appeal is due to consider the case of Brazel v The Harpur Trust on 2 May 2019to decide whether it is appropriate for employers to calculate holiday payments for part-time workers on the basis of a percentage of the hours worked.
The Employment Appeal Tribunal (EAT), which handed down its judgement on 6 March 2018, decided that using a percentage of hours worked to calculate holiday was wrong. Rather than calculating the basis for holiday pay by the methodology set out in s224 Employment Rights Act 1996, it had been calculated on the basis of 12.07% of Mrs Brazel’s total pay over a year. The EAT stated that holiday pay should be calculated on the basis of a 12 week average before the holiday is taken. HEIs who are currently using the percentage calculation, will need to change the way in which holiday pay is calculated, if it is decided in the upcoming case is that a percentage method is not correct.