To start with, it calculated Ms Brazel’s holiday pay in accordance with the rules on a ‘week’s pay’ set out in the employment rights act (ERA). To achieve this it capped her holiday pay by applying a mathematical formula of 12.07 per cent – a commonly used figure based on 5.6 weeks’ holiday, divided by 46.4 weeks (52 minus 5.6). This meant that she received less paid leave than if she’d been paid for 5.6 calendar weeks’ leave at the statutory rate of a week’s pay. The court also said that employers couldn’t use 12.07 per cent (or any other percentage) to calculate holiday pay. You must calculate holiday pay by averaging their pay over the previous 52 weeks, ignoring any weeks that they haven’t worked each time they go on leave.