Video: Holiday pay update for schools
21st September, 2022
The Supreme Court recently handed down a judgment on holiday pay, this video covers the significant implications that will be felt across the education sector.
The slides used in the presentation are available to download here
In Harpur Trust v Brazel, the employee was a peripatetic music teacher who worked varying hours each week during term-time. The school paid her holiday pay in three instalments at the end of each term, equivalent to 12.07% of her earnings during that term. This 12.07% figure reflects a well-established method for calculating holiday pay entitlement for casual or atypical staff, which was advocated by now-removed ACAS official guidance as the appropriate method to use in such circumstances to ensure parity with full-time equivalent workers.
However, the Supreme Court have ruled that this is not permitted by the Working Time Regulations 1998. Their judgment means that casual and atypical staff must receive a full-time holiday entitlement with a holiday pay calculation basis which is likely to place them in a more favourable position than full-time colleagues (including term-time only staff with regular working hours). The Supreme Court acknowledged this disparity, which could produce extremely disproportionate holiday pay entitlements with certain casual or atypical working patterns (the example of invigilators was provided).
This ruling is likely to affect any schools clients who engage any individuals whose working hours vary from week to week (most notably but not necessarily limited to ‘casual’ staff).
If you have any questions about any of the topics raised in this video please contact one of our expert Employment solicitors.