Check Your Holiday Pay Now!

Check your holiday pay calculations now!

Holiday pay should not be calculated by using 12.07% of the hours worked, (i.e. 5.6 weeks/46.4 weeks), which is how a lot of SDS payroll providers currently do it. This was the finding in the legal case of Harpur Trust v Brazel (July 2022) Harpur Trust v Brazel - Case Summary

Holiday pay should be paid as a minimum of 5.6 weeks per year multiplied by your average weekly pay. (The average weekly pay is calculated by looking at the past 52 weeks payment, but only including the weeks you received a normal pay, i.e. weeks with zero pay or just SSP are excluded from the average.) If you work variable hours each week, or work less than 46.4 weeks in the year, then you probably have been underpaid holiday pay! You are entitled to make a backdated claim for up to two years.

There is another benefit of this ruling if you work part time and can change your working pattern to work every second week, rather than every week.
For example, a PA currently works 10 hours per week @£10.90 = £109 per week. Holiday pay for the year will be 5.6 weeks * £109 = £610.40
If the PA changes their working pattern and works 20 hours every second week, their weekly pay will be £218. Holiday pay for the year will then be 5.6 weeks * £218 = £1,220.80
The PA has worked the same total number of hours over the year, but they receive double the holiday pay if they work the every other week pattern!. The judges in the Harpur Trust case acknowledged this anomaly but said it was perfectly legal. At last a legal loophole that benefits lower paid workers, rather than the wealthiest with their tax avoidance schemes!

Check your holiday pay calculations for the last 2 years now!!

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Hi Adrian

We are aware this is a live and complex issue for payroll providers, with many seeking further advice.

We would advise PAs who have queries about their holiday pay to speak with their employer in the first instance. ACAS can also be contacted for help and advice around employment issues: