3. Holiday PayThe correct basis for calculating an employees
entitlement to holidaypay basic pay or normal earnings? Working
Time Directive 1993 Provisions included: 48 hour working week UK
agreement - Opt out provision for working hours Four weeks paid
leave Working Time Regulations 1998 Employment Rights Act 1996
Holiday payments made at basic salary rates
4. Holiday PayThe correct basis for calculating an employees
entitlement to holidaypay basic pay or normal earnings? Williams v
British Airways Pay normal remuneration inc. paymentsintrinsically
linked to contractual duties Neal v Freightliner Ltd Include
voluntary overtime where theres anintrinsic link Wood and others v
Hertel (UK) Ltd Include compulsory overtime andincentive bonuses
Fulton and another v Bear Scotland Ltd Calculate based on
12-weekreference period Law & Others v Amec Group - Include
compulsory overtime Lock v British Gas Trading Ltd Include
commission directly linked tocontractual duties which has degree of
permanence Elms v Balfour Beatty Utilities Solutions Ltd Dont
factor in overtime
5. Holiday PayLatest Position July / August Appeal hearings in
Wood, Fulton and Law cases concludedat EAT judgement reserved
August - Unions send information packs to members November 2014:
Wood, Fulton and Law - EAT decision handed down in favour of
workers Non-guaranteed overtime which employees are required to
undertake shouldbe included in holiday pay calculations Does not
apply to holidays in excess of the four weeks holiday laid out in
theWorking Time Directive 1993 Retrospective claims not possible
where a three month gap exists betweensuccessive underpayments
6. Holiday PayOptions1. Implement changes so holiday pay
equates to normal earningsincorporating regular overtime and
commission.2. Sit tight and hope for the best!Regardless, review
existing methods, assess liability and establish a fund.