This is an update to our previous article
Permission was granted in June 2020 to appeal the Court of Appeal decision regarding how employers calculate holiday pay. By way of reminder, in accordance with the Court of Appeal decision, an employee who is employed under a permanent contract, but who only works for part of the year, should receive the same 5.6 weeks' holiday entitlement as an individual who works all year round. They would also receive a proportionately higher rate of pay for their holiday than full year workers.
As a decision from the Court of Appeal, this decision is currently binding.
The appeal to the Supreme Court will be heard on 9 November 2021. If successful, the principle of pro-rating the 5.6 weeks' holiday entitlement for those who work part of the year could be re-instated. Such an outcome would be welcomed by employers. Further information on the Court of Appeal decision, our advice to stay any claims raised and interim steps can be read here.