We are aware that some organisations have not still not reacted to the Employment Appeal Tribunal Rulings on holiday pay. Additionally some organisations appear to be restricting back dated pay increases to contracted hours worked.

Minimum 5.6 weeks Holiday Pay
Whilst the outcome of the The Harpur Trust v Brazel appeal to the Supreme court remains pending employers should give good consideration to following the earlier employment appeal tribunal rulings notably; that holiday pay for those working less than 52 weeks a year are entitled to the same weekly holiday entitlement as those working full time. A minimum of 5.6 weeks applies in both cases.

Holiday Pay based on Hours worked
There are numerous Employment Tribunal rulings that make it clear that holiday pay for those on zero or variable hour contracts or those who work regular overtime must have a minimum of 4 weeks their holiday pay per year paid based on the average hours worked over the preceding 52 weeks.

There is no ruling on what constitutes “regular overtime” but given the negative goodwill that develops when staff feel they are being unfairly treated employers are advised to be generous.

Back dated pay increases
when pay increases are awarded retrospectively employers need to take care that they do not discriminate. Restricting pay increases to contracted hours, for example, may lead to breaches of the minimum wage regulations and/or part time workers regulations.

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