The Government is in consultation about how the annual leave of part-year workers and workers who work irregular hours should be calculated. The consultation period closes on 9th March 2023.
The suggestion is to introduce a “52-week holiday entitlement reference period” which will ensure annual leave is accrued and paid in a way that is directly proportionate to the time the individual spends working. Any weeks in which an individual works zero hours will also be included in this reference period.
This is in response to last years’ Supreme Court ruling in Harpur Trust v Brazel. The Supreme Court found that holiday entitlement for permanent part-year workers, for example those who only work during term time, should not be pro-rated, to make it proportionate to full-time workers.
This case meant that part-year workers are entitled to a greater amount of paid annual leave than part-time workers, who work the same number of hours across the whole year.
The Government estimates that the change will benefit up to half a million individuals, with around 37% of these working in the education sector.
If you need help calculating your employee’s holiday entitlement, contact our employment team on 0330 088 2275.
The team at FTA Law provides advice to clients across the commercial and healthcare sectors with many of our instructions coming from referrals from long standing clients and industry contacts.
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