New ruling on Term-Time Holiday Entitlement

Employment Law News

The UK’s part-year workers are now entitled to full paid annual leave, court rules.


The Supreme Court, the highest court in the UK, has just ruled on term-time contracts and holiday pay. 

Term-time staff, such as teachers, have long argued that they should be entitled to the same annual leave as staff working on full year contracts. Recently, the case was taken to the Supreme Court and a judgment has now ruled that employees should receive the same amount of paid annual leave as their colleagues who work all year around.

‘Rolled up’ holiday pay is when staff are paid for annual leave as part of their hourly rate; meaning it’s “rolled up” together rather than being paid for annual leave when it’s taken. Rolling up holiday pay has been illegal for some time, but many organisations have continued to apply the 12.07% rule for calculating leave entitlement and pay for those who work term-time and part-year.

This ruling now means all staff are entitled to the 5.6 week calculation, which is still pro-rata’d for part time staff, or those who start part of the way through the year.  No member of staff can be put at detriment because they work a different pattern to others.

There are only two circumstances in which staff can receive holiday pay – they take annual leave or they leave the organisation. You can find more information about the ruling here: The Supreme Court – Harpur Trust v Brazel.


Get in touch with if the new ruling affects your organisation for advice and information.



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