Clifford Chance

UK: Client Briefing - Harpur Trust v Brazel - What now for holiday pay - claims and calculations?

21 July 2022

The question of how to calculate the holiday entitlement of a term time worker (i.e. an individual working only part of the year) might not appear to be relevant or significant to many employers. This thorny issue has now been considered by the Supreme Court in Harpur Trust v Brazel (Harpur). The Court's decision has significant implications for employers in terms of the approach to calculating both the holiday entitlement of part year workers and other workers with atypical contractual arrangements, and the extent of any latent holiday pay liabilities arising as a result of adopting a different approach to date.

This Briefing explores some of the outstanding legal and financial issues in relation to holiday pay and how employers can mitigate their holiday pay liability risks.

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