What Is The Holiday Entitlement And Pay For Part-Year Workers?

• Published date: 27 September 2022
• Subject Matter: Employment and HR, Litigation, Mediation & Arbitration, Contract of Employment, Employment Litigation/ Tribunals, Trials & Appeals & Compensation
• Law Firm: Harrison Drury Solicitors
• Author: Ms Kate Shawcross

Kate Shawcross, senior associate solicitor in Harrison Drury's employment law team, provides an update on the final decision on a recent case regarding holiday pay for part-year workers and offers points to consider for employers with part-year employees due to the outcome.

In late 2019, we covered the Court of Appeal ruling on The Harpur Trust v Lesley Brazel & UNISON [2019] EWCA Civ 1402, which considered how holiday entitlement and pay should be calculated for part-year workers, working under permanent contracts.

Following an appeal by the Harpur Trust, the Supreme Court recently handed down its Judgment.

In summary, the Supreme Court upheld the judgment of the Court of Appeal, confirming that part-year workers must receive at least 5.6 weeks' paid holiday each year (which equates to 28 days for those who work a five-day week), regardless of the number of weeks that they work across the year.

This case will be relevant for workers that have an ongoing contract (i.e. permanent staff rather than those on fixed-term contracts), but only work some weeks of the year (e.g. they might only work during school term-time).

Calculating holiday entitlement for part-year workers

It has been acknowledged by the Supreme Court that this may cause unusual and extreme results.

For example, the effect of the judgment means that an employee on a permanent contract who is paid '1,000 for working only one full week each year (such as exam invigilators), would be entitled to 5.6 weeks' paid annual leave, at '5,600.

It is worth noting however that only those part-year workers who work five days per week will be entitled to the full 28-day holiday entitlement.

An employee working term-time for two days each week will only be entitled to 11.2 days' annual leave each year, as this amounts to 5.6 weeks' holiday based on their...