Holiday Pay Clarity Reached
24th November 2023
Following the Harpur Trust vs Brazel case, the UK government consulted early in 2023 on proposals to change the law on calculating holiday pay for part-year workers such as peripatetic music tutors. It has now responded to this consultation (along with two others: Working Time Regulations records and small TUPE consultations).
The Supreme Court’s judgement in the Brazel case (published July 2022) found that the common practice of rolling up holiday pay as a 12.07% pay enhancement is unlawful. However the single methodology approved in legislation results in part-year workers being entitled to more holiday pay than if they worked the same hours over a full year.
To resolve this anomaly, the government has now laid draft legislation before Parliament which will result in the 12.07% calculation being legalised for part-year workers. It will be known as Rolled up Holiday Pay (RHP). The legislation is intended to come into force on 1st January 2024.
The government notes objections that this may discourage workers from taking leave (since they would not be paid at the time of their leave) but believes that other safeguards are sufficient. There is no change to holiday pay arrangements for those who work year-round.
Music Mark will signpost any further information and guidance as it comes available and will provide resources and briefings as required.
