Part year workers gain holiday advantage
The recent Court of Appeal decision on holiday pay for part time, “part year” workers will put some part time employees in a more favourable position than full time employees when it comes to holiday pay. The impact of the case is unlikely to be as wide ranging as some press reports imply, as it only applies to permanent staff who work part of the year, most commonly those in academia, rather than part timers generally or casual staff who have no contract between assignments.
In Harper Trust v Brazel, Ms Brazel worked as a visiting music teacher at a school run by Harper Trust. She had a permanent contract on a zero hours basis and worked part time, during term time only with varying hours each week. The issue was that the Trust calculated her holiday pay by paying her 12.07% of her earnings at the end of each term, which complied with the ACAS guidance for casual staff, who have no permanent contract.
Ms Brazel successfully argued that this calculation bore no relationship to the actual calculation set out in the Working Time Regulations 1998 (WTR) for someone in her situation. The WTR requires the employer to take her average pay over a 12 week reference period. The CA found that under the WTR, an average of Ms Brazel’s earnings over a 12 weeks reference period should be the basis of the calculation, which results in more than a 12.07% payment.
This decision could prove costly for schools and universities that use permanent contracts for part time, part year workers and have capped their holiday payments to 12.07% of pay. The impact is reduced by the limits on making unlawful deductions from wages claims that can only be made in relation to the previous 2 years. Additionally, from next April holiday pay in this situation will be calculated over a 52 week reference period, which will reduce the impact of this decision. Some organisations may choose to see if the case is appealed to the Supreme Court before making any changes.
For more information, please contact Emma Bartlett.
Our thinking
Is the UK open for business? A discussion with the Home Office
Join our Immigration team for a live webinar with policymakers from the Home Office.
Rose Carey
Relocating to the UK – Post Tier 1 (Investor)
The UK government closed the Tier 1 Investor visa route with immediate effect on 17 February 2022.
Lesley O’Leary
Briefing publishes Lesley O’Leary 's comments on hybrid working and the impact on collaboration
Briefing publishes Lesley O’Leary 's comments on hybrid working and the impact on collaboration
Emily Chalkley
How to tackle a large Gender Pay Gap
Nick Hawkins
Nick Hawkins writes for Employment Law Journal on demystifying employment contracts
Nick Hawkins explains the key legal principles that govern contracts of employment.
Michael Powner
Michael Powner and Emily Chalkley write for People Management on who pays the price for vicarious liability
Michael Powner and Emily Chalkley explain whether an employer should ever be liable for wrongdoing committed by their employees.
Katherine Dennis
New Global Mobility visa route – coming Spring 2022
A new Global Business Mobility visa route is launching in the Spring of 2022.
Clare Davis
National Minimum Wage – At risk of committing a criminal offence?
To best prepare, you need to understand the nature of the risks involved and take steps to minimise them.
Rose Carey
Summary of corporate immigration changes 2022
The Home Office has announced a raft of business immigration changes which will affect employers and workers alike.
Becky Lawton
New family-friendly rights – but will they be implemented in 2022?
The government has committed to introducing several new family rights following a number of consultations over the last couple of years.
Becky Lawton
The talent gap, recruitment and retention issues
Employers continue to struggle attracting and retaining talent in a market rife with labour shortages and widely-reported pay pressures.
Paul McCarthy
New Employer and Landlord Digital ID Checks – A Good IDea?
Becky Lawton
Becky Lawton writes for Employee Benefits on whether new staff family rights come into force in 2022
The government has committed to introducing several new family rights following a number of consultations over the last couple of years.
Nick Hurley
Nick Hurley appears on the Oven-Ready HR Podcast to discuss the latest developments in the world of employment law
Nick discusses the 2022 employment law landscape on the Oven-Ready HR podcast.
Mark Hill
UAE Labour Law Update – The five big changes to note…
Federal Decree Law No. 33 of 2021 - The five big changes to note
Rose Carey
The UK's Immigration System Opens Up to Overseas Care Workers
Employers will be able to sponsor care workers and home carers under the Skilled Worker (Health and Care visa) category.
Becky Lawton
Dismissal for refusing vaccination found to be fair
An employment tribunal found that the summary dismissal of a care assistant who refused to be vaccinated, was fair.
Sam Lawn
Out of Office – 5 tips for employers considering a more flexible approach to where we work
Briony Richards
AI and HR - How can employers reduce the risks associated with using artificial intelligence to help manage their workforce?
Nick Hurley
Nick Hurley quoted by People Management on whether employers can reduce sick pay for unvaccinated staff
Nick comments on the legal risks for companies opting not to provide company sick pay to isolating unjabbed workers.