Holiday Pay Impacts

Following the Supreme Court UK ruling on the Harpur Trust Vs Brazel case there are some significant changes expected to how Holiday pay is calculated for UK employees.

The case looked at the Harpur Trust, who is an independent school operator Vs Ms. Brazel, an employed part-time music teacher by them. They had calculated her holiday pay based on the time she had worked, rather than what she was entitled to as an employee of the school.

The dispute arose following a change in the method used by the trust, who had opted to move away from the calendar method (multiplying average wage by 5.6) to the percentage method (using her average worked hours each term and multiplied by 12.07%). This change resulted in Ms. Brazel receiving less money and so she brought the case to an employment appeal tribunal.

Ms. Brazel’s claim was upheld as an unlawful deduction being made from her salary, Harpur Trust took the appeal to the Supreme Court which dismissed the claim meaning that Ms. Brazel was to be paid on the calendar method.

This really does throw up some questions around the percentage method and the fairness it applies to part-time workers. Those on zero-hour, flexible or seasonal contracts. Could more claims be raised for backdated pay, it’s possible.

For me this case highlights the need for companies to have very clear policies where holiday pay is concerned. Being a responsible employer is far more than just policies though, it comes from having clear company values – What do yours say about you/your company?

I know this can be a tricky area for some business leaders to nail, and that’s where we as HR professionals and People Leaders can really step up and guide the business to live and breathe the values through their culture, policies, and processes.

If you’re a stand-alone HR professional, a leader in a small business with no HR Dept, or setting up your HR for the first time, and struggling to know where to start, then do check out a MyPeopleClub membership. 

I know first-hand how time consuming it can be when you’re unsure where to start, I’ve wasted hours trawling the internet for guidance, the right advice, and templates (often creating my own!) so now you don’t have to! It’s all there for you!

Nailing company values is the backbone to any successful business as this creates a canvas to work everything else from, it’s what I was passionate about as an HRD, it’s what I am passionate about with my clients today. That passion is now thrown into MyPeopleClub for our members to benefit from as I’ve shared my sample policies, templates and HR resources built up over my 20+ Year career to support the next generation of HR professionals, leaders and business owners.