18/07/2023
Understanding the Harpur Trust v Brazel ruling is crucial for all employers. This landmark case has changed the way holiday pay is calculated for zero-hour and irregular hour workers. The pivotal issue is that the government did not bring forward any clear alternative to the 12.07% rule, that was previously used to calculate holiday accrual for irregular/casual/zero hours workers. The guidance is fuzzy and making sense of it can be difficult.
Furthermore, many payroll systems may not yet be equipped to handle these changes, which could leave you in a tricky situation. To help you untangling this knot, we've developed a step-by-step guide with practical examples to help you understand how to process holiday pay for this category of staff members until the government provides additional guidance/revision on the ruling.
Stay informed and ensure you're compliant to avoid unnecessary legal complications. Comment if you think you found this guide helpful and get in touch with us if you want to discuss a specific case, or even to devise a better process to be compliant with the ruling of Harpur Trust v Brazel.
Introduction Calculating holiday pay for employees with irregular hours, such as those on zero-hour contracts or term-time contracts, can be a complex task. A landmark legal case in the UK, known as Harpur Trust vs Brazel, has shed light on this issue and led to important changes in how holiday pay....