04 November 2014

Non-guaranteed overtime must be included in holiday pay

The EAT judgment has just been handed down in the conjoined cases of Fulton v Bear Scotland and Baxter, Hertell (UK) Ltd v Wood and ors, and Amec Group Ltd v Law and ors, concerning the calculation of statutory annual leave holiday pay.
Non-guaranteed overtime, that must be accepted when offered, must be included in the calculation of pay, as must shift allowances and other comparable payments, and it is possible for the Working Time Regulations to be construed so as to conform.
The liability for back pay, however, will in most cases be limited to the holiday year.   This is because it will be taken that Regulation 13A leave (the 1.6 weeks under the Working Time Regulations) must be taken after Regulation 13 leave (the 4 weeks required by the Directive), so any claims for pay back will stop whenever there is more than 3 months between the different types of leave.   This is because the chain of deductions will be broken.
Leave to appeal has been granted.
Click here to read the full judgment.

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