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The four UK tribunal cases that rewrote holiday pay

Most of the modern rules about what counts toward holiday pay, who accrues at 12.07%, and how long sick workers can carry leave forward come from four landmark cases between 2014 and 2022. Here is what each one decided, in plain English, and what still applies after the April 2024 Working Time reforms.

Updated 18 May 2026

Harpur Trust v Brazel (2022)

Supreme Court

Citation: [2022] UKSC 21Issue: Part-year workers on permanent contracts

Ms Brazel was a peripatetic music teacher on a permanent zero-hours contract, working only during term time. The Harpur Trust calculated her holiday pay at 12.07% of earnings, the standard formula for irregular hours. Ms Brazel argued she was a permanent worker entitled to the full 5.6 weeks under the Working Time Regulations 1998, calculated using the 52-week reference period under section 224 ERA 1996.

The Supreme Court unanimously agreed with her. Under the WTR 1998 as drafted at that time, a permanent worker was entitled to 5.6 weeks regardless of how many weeks they actually worked in the year. Result: she was entitled to roughly 17.5% of earnings, not 12.07%.

What changed after this case

The April 2024 Working Time Amendment Regulations restored the 12.07% accrual for irregular-hours workers and part-year workers on leave years starting on or after 1 April 2024. So Harpur Trust v Brazel applies only to claims for periods before that date.

See also our April 2024 reform explainer.

British Gas Trading v Lock (2014/2016)

CJEU + Court of Appeal

Citations: C-539/12 (CJEU 2014), [2016] EWCA Civ 983Issue: Commission in holiday pay

Mr Lock was a sales consultant whose pay was roughly 60% basic and 40% commission. When he took annual leave he was paid only basic salary, so going on holiday cost him real money. He argued that the Working Time Directive required holiday pay to reflect his "normal remuneration".

The Court of Justice of the European Union agreed: commission that is intrinsically linked to performance of duties must be included in holiday-pay calculations for the EU-derived 4 weeks. The UK Court of Appeal upheld and applied this in 2016.

Still applies today

For workers paid wholly or partly on commission, holiday pay for the EU 4-week portion must include a representative averaged commission element. The standard calculation now uses the 52-week reference period under section 224 of the Employment Rights Act 1996.

Bear Scotland Ltd v Fulton (2014)

Employment Appeal Tribunal

Citation: [2014] UKEAT/0047/13Issue: Overtime in holiday pay; back-pay limits

A group of road workers argued their holiday pay should include non-guaranteed overtime, overtime that the employer doesn't have to offer but, if offered, the worker has to do. They had been paid basic salary only on holiday despite earning substantial regular overtime.

The Employment Appeal Tribunal ruled that non-guaranteed overtime must be included in the 4-week EU-derived portion of statutory leave pay. The court also introduced the "three-month gap" rule: a continuing series of unlawful deductions from wages is broken if there is any gap of three months or more between underpayments.

Still applies + a statutory back-pay cap

Non-guaranteed overtime still counts for the EU 4-week portion. The three-month-gap rule still applies, and the Deduction from Wages (Limitation) Regulations 2014 cap holiday-pay back-pay claims at 2 years from the date of complaint (presented after 1 July 2015).

Plumb v Duncan Print Group (2015)

Employment Appeal Tribunal

Citation: [2015] UKEAT/0071/15Issue: Sickness carry-over of unused leave

Mr Plumb was off work sick for years. When he returned, he sought to take leave that had accrued during his absence and been carried over. The dispute was about how long workers can carry over EU-derived statutory leave that they could not take because they were too ill.

The Employment Appeal Tribunal held that the 4-week EU-derived portion of leave can be carried over for up to 18 months from the end of the leave year in which it accrued. After 18 months it is lost.

Still applies today

18-month carry-over for the 4-week EU portion during long-term sickness remains the standard. Carry-over is also permitted where workers were unable to take leave due to other Covid-related reasons under regulations made in 2020 (now mostly expired). The 1.6-week UK top-up portion can be carried forward by agreement for up to one leave year.

Quick reference: what counts toward holiday pay

Payment typeEU 4 weeksUK 1.6 weeksAuthority
Basic salaryIncludedIncludedWTR 1998
CommissionIncludedBy agreementBritish Gas v Lock
Non-guaranteed overtimeIncludedBy agreementBear Scotland
Voluntary overtime (regular)IncludedBy agreementDudley MBC v Willetts (2017)
Shift / unsocial-hours premiumsIncludedBy agreementWilliams v BA (CJEU 2011)
Discretionary bonusesExcludedExcludedGeneral principle

The UK 1.6 weeks (the domestic top-up that brings 4 weeks of EU leave up to the 5.6 weeks UK total) is not subject to the same enhanced-rate rules as the EU 4 weeks. Many employers apply the higher rate to all 5.6 weeks for administrative simplicity, but they are only required to do so for the 4-week EU portion.

Bringing a holiday-pay claim today

Holiday-pay claims are usually brought as unlawful deduction from wages claims under section 13 of the Employment Rights Act 1996. The Employment Tribunal time limit is 3 months minus 1 day from the last underpayment, with a 2-year cap on back-pay under the 2014 Limitation Regulations.

Before issuing in the Tribunal you must contact ACAS for early conciliation. ACAS will try to broker a settlement first; if it fails, ACAS issues a certificate which is required to lodge a claim. The 3-month clock pauses during conciliation.

Common mistakes that defeat claims

  • Three-month gap. A break of three months or more between underpayments resets the chain. Bear Scotland is still good law on this point.
  • Wrong reference period. Since April 2020 the reference period for variable pay is 52 weeks (previously 12). Using the old period understates the claim.
  • Mixing EU and UK portions. The 4-week EU portion attracts higher pay rates; the 1.6-week UK top-up doesn't. Employers can lawfully pay only basic salary for the top-up if the contract is silent.

Sources and further reading

Related

Last verified 2 May 2026 · Sourced from UK Working Time Regulations 1998 (with 2024 amendments) and ACAS guidance

Updated 2026-04-27