New Holiday Entitlement - This is important if you employ staff
A recent Supreme Court decision in Harpur Trust v Brazel means the need for changes to holiday pay calculations for many employers.
This basically effects employees who are hourly based only or term-time contracts or those contracted for odd days year on year.
It means that holiday entitlement, and hence holiday pay, will need to be calculated differently from that in the past. This will raise complications for calculation and for understanding in many cases.
Employees who fall into these categories will now be entitled to the statutory holiday of 5.6 weeks as a minimum, the same as a full time employee!
Examples of new holiday entitlement:
No change in holiday entitlement
Full time employee
(5 days per week)5.6 weeks holiday
28 days (inc bank holidays)
Part-time employee working say
3 days per week every week of year3.36 weeks holiday (3/5ths of full time holiday)
16.8 days (inc bank holidays)
Contracts that are now effected by the change
| Employee working 5 days per week Term-time only |
5.6 weeks holiday | 28 days (inc bank holidays) |
| Employee working say 3 days per week Term-time only |
3.36 weeks holiday (3/5ths of full time holiday) | 16.8 days (inc bank holidays) |
| * Hourly based employee working full year doing various hours | 5.6 weeks holiday | 28 days (inc bank holidays) |
* This last one my seem crazy, but that is the new rule.
To calculate the holiday pay for hourly based staff, if their work has no fixed or regular hours, holiday pay will be based on the average pay you got over the previous 52 weeks. For example, casual work on a zero-hours contract or shifts that change without a fixed pattern.
For further details on the change, please see the below links:
https://www.acas.org.uk/checking-holiday-entitlement
https://employersolutions.co.uk/momentous-changes-to-holiday-pay
We realise many of your will have employees on full time contracts or just part-time which won’t be affected, but those who have hourly staff or term-time only staff will now have to provide the same as a full time employee.
If we do process your payroll, we do not always know the contract your employees are on.
If you are unsure if you and your employees are affected by this, please email Liam or Vanessa.
Regards
Caladine
We have found Caladine a pleasure to work with. They are responsive, friendly, and helpful whilst conducting a thorough, rigorous audit and providing us with good feedback and advice 
