Holiday Pay Judgment. What we will be discussing at tomorrow’s seminar
The Employment Appeal Tribunal has handed down the long awaited decision in Bear Scotland Ltd v Fulton and Baxter UKEAT/0047/13, Hertel (UK) Ltd v Wood and Others UKEAT/0160/14 and Amec Group Ltd v Law and Others UKEAT/0161/14.
Key points outlined in the decision are;
- The calculation of holiday pay is to be based upon an employee’s ‘normal’ pay rather than the employee’s basic hours. This means a sum representative of what the employee would have earned had they not been on holiday.
- Workers who regularly work overtime are entitled to be paid a sum of money to reflect this as part of their annual leave payment.
- At the present time, the guidance only applies to the basic 4 weeks of holiday that employees are entitled to take under the Working Time Directive (and not the additional 8 days afforded under the Working Time Regulations, or contractual enhancements.)
- It is possible to interpret the requirements the Working Time Regulations to achieve compliance with the requirements of Article 7 of the Working Time Directive.
- In relation to retrospective claims for employees, the Employment Appeal Tribunal clarified that should there be any break of more than 3 months in any underpayments of annual leave, the claim will be out of time and the Employment Tribunal would not have jurisdiction to hear such claims.
Of great significance, Mr Justice Langstaff gave all parties leave to appeal the case to the Court of Appeal. The parties have 21 days from the date of the Judgment (4th November 2014) to do so.