Holiday pay: 12.07% formula should not be used for workers with no normal working hours

In a decision which potentially significantly impacts employers who engage workers under arrangements which do not have set normal working hours, the Court of Appeal has confirmed that holiday pay should not be calculated on the basis of 12.07% of hours worked but instead should be based on an average of earnings in the 12 weeks before leave is taken. As the crux of this case was whether workers who do not work throughout the year should receive less holiday entitlement and holiday pay than those who do, the decision will particularly affect businesses which engage workers who work less …

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