The United Kingdom Supreme Court has outlawed the 12.07% method (the percentage method) for calculating holiday pay.
ACAS guidance previously recommended using the percentage method for irregular and casual workers, as changing shift patterns and gaps between working can make holiday calculation complex and lead to ‘absurd’ results.
Due to its simplicity, the percentage method is thought to be used by many employers across the UK who employ casual workers, despite the 2019 Court of Appeal judgment, which reached the same conclusion.
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