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Important Case: Holiday Pay

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The Employment Appeal Tribunal has, this morning, handed down judgment in Bear Scotland v Fulton (and conjoined cases).

Key points:-

1.  workers are entitled to be paid a sum of money to reflect normal non-guaranteed overtime as part of their annual leave payments

2.  that applies only to the basic 4 weeks' leave granted under the Working Time Directive, not the additional 1.6 weeks under regulation 13A of the Working Time Regulations

3.  claims for arrears of holiday pay will be out of time if there has been a break of more than three months between successive underpayments (subject to the reasonable practicability test)

4.  travel time payments, which exceed expenses incurred and so amount to additional taxable remuneration, should also be reflected when calculating holiday pay.

The Employment Appeal Tribunal refused to grant a reference to the Court of Justice of the European Union, but gave permission to appeal to the Court of Appeal (stating that ground 3 was the most significant point for the Court of Appeal to consider).