EAT Dismisses NHS Trust's Holiday Pay Appeal: Premature Challenge to Calculation Method
An NHS trust's challenge to a tribunal's holiday pay calculation method has been rejected by the Employment Appeal Tribunal. The EAT found the appeal premature as the final pay amount remains undetermined.
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NHS Trust's Holiday Pay Appeal Thrown Out by EAT
The Employment Appeal Tribunal (EAT) has dismissed an appeal by East Lancashire NHS Trust concerning the calculation of holiday pay for a phlebotomist, Mr Imran Akram, who worked irregular hours. The EAT found the appeal premature, as the original employment tribunal had not yet finalised the calculation of the amount owed.
Dispute Over Working Days vs. Calendar Days
The core issue centres around the correct divisor to use when calculating holiday pay. The Trust argued for calendar days, while Mr Akram and the tribunal favoured working days. The EAT clarified that the method, whether using 365 days or another figure, is less crucial than ensuring the final calculation accurately reflects the wages earned during the relevant working period. The key principle, the EAT reiterated, is that employees should receive no less pay while on holiday than they would have earned while working.
Clarity on Calculating Holiday Pay
The EAT emphasised the importance of using the calculator provided in the Working Time Regulations, along with its referenced statutory definitions, to determine weekly pay. Subsequent calculations for daily or hourly rates should be based on actual wages earned. This approach aims to ensure holiday pay accurately reflects the employee's typical earnings.
A Simple Sense Test for Holiday Pay Calculations
The EAT offered practical guidance: multiplying the calculated daily or hourly holiday pay rate by the relevant number of working days or hours should roughly equate to the total earnings within a specific reference period. This sense check helps ensure the holiday pay calculation is fair and accurate.
Read the entire judgement here: East Lancashire NHS Trust v Imran Akram [2025] EAT 2
