Ms Brazel was a music teacher who worked during term time on a permanent contract. The school calculated holiday pay using a percentage method that effectively pro-rated her entitlement. She argued that the statutory calendar-week calculation should be used.
Selected cases
UK Supreme Court · [2022] UKSC 21
Harpur Trust v Brazel
The UK Supreme Court considered holiday pay for a part-year worker on a permanent contract.
UK Supreme Court20 July 2022
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Quick read
- Holiday pay is a payroll legal issue, not just an HR estimate.
- The UK Supreme Court considered holiday pay for a part-year worker on a permanent contract.
Use this to check
- Audit holiday pay for irregular and part-year workers
- Update payroll when statutory rules change
- Keep clear records of hours, weeks worked and leave calculations
Decision snapshot
What happened
- Ms Brazel was a music teacher who worked during term time on a permanent contract.
- The school calculated holiday pay using a percentage method that effectively pro-rated her entitlement.
- She argued that the statutory calendar-week calculation should be used.
What the court had to decide
- The issue was whether annual leave and holiday pay for part-year workers should be pro-rated to reflect weeks not worked.
What the court decided
- The Supreme Court dismissed the employer's appeal and held that the statutory calculation in force at the time did not permit the employer's pro-rating approach.
- Later legislative changes mean employers should check the current rules for irregular-hours and part-year workers.
Practical impact
Practical read
- Holiday pay is a payroll legal issue, not just an HR estimate.
- Employers with variable-hours, term-time or irregular workers should use current statutory rules and check payroll setup whenever the law changes.
Useful next steps
- Audit holiday pay for irregular and part-year workers
- Update payroll when statutory rules change
- Keep clear records of hours, weeks worked and leave calculations
How businesses should read it
Holiday pay is a payroll legal issue, not just an HR estimate. Employers with variable-hours, term-time or irregular workers should use current statutory rules and check payroll setup whenever the law changes.
Key takeaways
- Audit holiday pay for irregular and part-year workers
- Update payroll when statutory rules change
- Keep clear records of hours, weeks worked and leave calculations