Why has a consultation been launched?
The Supreme Court's decision in Harpur Trust v Brazel confirmed that part year workers and those working irregular hours are entitled to 5.6 weeks' holiday. The Supreme Court also confirmed that holiday pay for those working variable hours should be calculating by taking their average pay over the last 52 weeks, ignoring weeks where they did not work. This meant the often used 12.07% percentage method to calculate holiday pay for casual workers was no longer correct.
The judgment resulted in some disparity with part-year workers being entitled to a larger holiday entitlement than part-time workers who worked the same total number of hours across the year. The Government has estimated between 320,000 – 500,000 permanent term-time and zero hours contract workers will receive more holiday because of the Harpur case.