'Act now' | New Supreme Court case could cause another holiday pay headache for HR

A case being heard in the Supreme Court this week could have significant implications for how businesses approach holiday pay and historic claims of underpaid holidays, an employment law expert has warned.

In recent years, there has been a raft of cases dealing with holiday entitlement and pay including a departure from the age-old 12.07% accrual formula.

These have already been causing a headache for businesses and HR professionals who are having to revise or reassess their holiday practices including how holiday pay is calculated.

In July 2022, following a seven-year legal battle, the Supreme Court announced its long-awaited decision in the landmark case of Harpur Trust v Brazel. The court ruled that employees who only work for part of the year, such as term-time workers, are entitled to the same holiday pay as colleagues working all year.