The EAT in Brazel v The Harper Trust has ruled that employers must calculate holiday pay for term-time (or other casual) workers using the normal rate of pay averaged over the 12 weeks prior to holiday being taken, in accordance with the express wording of the Working Time Regulations. It is not permitted to in effect pro rate the full –time annual entitlement or cap payments at 12.07% of annualised hours (as suggested by Acas guidance), even though this may mean part-time workers are treated more favourably than full-timers.
Update: this ruling has now been endorsed by the Court of Appeal. The calculation set out in the Working Time Regulations should be followed even if it results in part-year workers receiving a higher proportion of their annual earnings as holiday pay than appies to full-year workers. Permission to appeal has been sought.
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