This article has been brought to you by Slough Borough Council's HR Service Officer, Sylwia Wroblewska, on behalf of Michelle Higgs, HR Policy Manager. This is for the attention of Slough Schools.
Holiday pay for permanent staff who only work part of the year – such as term-time workers – should be calculated using their average earnings over a 12-week period and not pro-rated, the Court of Appeal has ruled. The common practice of applying a cap of 12.07 percent of annualised hours, as suggested by ACAS, was incorrect.
Action Required
Schools should review their approach to calculating holiday pay for permanent staff working part of the year and adopt the 12-week average pay approach going forward. Employers should also remember that the 12-week reference period will be increased to 52 weeks from 6 April 2020.
If you have any queries regarding this information please contact your HR advisory service provider.