A recent court ruling over the issues of holiday for workers has highlighted the fact that a much used, but not officially sanctioned formula, used to work out employees’ holiday should not be used.

The ‘12.07 per cent approach’ worked on paying 12.07 per cent of hours worked in a set reference period. This was then paid when the employee took their holiday. However, calculating holiday pay in this manner can lead to underpayments.

The ruling does not make a difference for part-time workers with a set working pattern ie. 3 days a week, who work 52 weeks a year. Their holiday pay continues to be calculated on a pro-rata basis. The same applies to fixed term employees whose holiday pay can also be worked out on a pro-rata basis.

The Government has provided an online tool for people to calculate their holiday entitlement here.

If you are unsure about the issues surrounding staff holiday announcements, then speak to our team today for the latest advice.