With apposite timing, given we're in peak summer holiday season, the Supreme Court has recently handed down a decision on holiday entitlement which potentially has a significant impact for employers who employ people on permanent contracts but who work for part of the year rather than across the whole year and whose pay varies across the year as a result. This might include those who work during term time only, for example, or certain seasonal workers. The decision means these workers may have entitlement to holiday (and pay) which might exceed what they currently receive with a knock-on effect that in some instances these workers may be treated more favourably for holiday purposes than their counterparts who work and are paid throughout the year.
The net result of this decision could see some of these workers, where the nature of their roles permit, moved off permanent contracts and onto short, fixed-term contracts in a bid to avoid the implications. Avid employment law fans may recall the concept of 'good work' introduced in 'Good Work: the Taylor Review of Modern Working Practices', a government backed review led by Matthew Taylor. With this in mind and with an eye to the protection of vulnerable workers, might we see a review of the relevant provisions of the Working Time Regulations to address the potential consequences of this decision? Read more about how this decision might affect your organisation meantime in our briefing. Link below.
The Supreme Court held that there is no requirement under EU law to pro-rate the leave entitlement of a part-year worker on a permanent contract and that the WTR do not pro-rate the entitlement of such workers.