n this update, we have focussed on the headline governance and regulatory issues that are facing RPs at this time. as we all deal with the Covid-19 crisis.
The case of Harpur Trust v Brazel was decided by the Court of Appeal, most aptly for a dispute over holiday pay, in the middle of this year’s summer holiday.
As you may remember from our ebriefing at the time, the decision concerned the calculation of holiday and holiday pay for employees on part-year continuous contracts (the Court specifically noted that this includes zero-hours continuous contracts). The Court of Appeal held that no pro-rata mechanism was included in the Working Time Regulations 1998, and so part-year employees were entitled to 5.6 weeks’ paid holiday just like their colleagues working all year round. The 12.07% accrual method to calculate both holiday and holiday pay that many employers use for workers and employees on part-year and zero-hours contracts was, the Court decided, not lawful. It is not clear whether this calculation can be used for assignment only of zero-hours contracts.
How can we help you?
- For more details on the case and the decision, you can read our ebriefing.
- We can help if you have any employees within your organisation who are likely to be affected by the judgment.
- Our employment and pensions team can assist with any specific queries that you may have – we can offer specialist sector-specific advice on the ramifications of this judgement.
- We have prepared a detailed and comprehensive toolkit on calculating holiday and holiday pay in light of the Harpur decision – it provides a full explanation of the decision in practical terms and gives real-life examples to demonstrate its implications. To purchase the toolkit please contact Libby Hubbard.
This is a key area for employers, so if you would like any further information or advice please contact Faye Rush.
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