On 12th January 2023, The Department for Business, Energy & Industrial Strategy (BEIS) opened a consultation* on the calculation of holiday entitlement received by part-year and irregular hours workers, following the recent Supreme Court judgment in Harpur Trust v. Brazel.
In the consultation BEIS proposes to introduce a holiday entitlement reference period for part-year and irregular hours workers, to ensure their holiday pay and entitlement is directly proportionate to the time they spend working.
BEIS also wants to understand how entitlement is currently calculated for agency workers and how the consultation proposal might be implemented.
We will monitor this closely to see if the consultation brings about change and simplification to the rather complex rules now in place due to the court case ruling.
Details of the consultation are on the GOV.UK website:
*As consultations are subject to change, this consultation does not affect the current requirements for calculating part-time or irregular-hour workers’ annual leave entitlement. In all cases, employers must ensure workers receive 5.6 weeks annual leave entitlement and pay.