Working Time Regulations: What is the correct way to calculate holiday pay?

Following on from her article last month on Harpur Trust v Brazel, Joanne Moseley reviews the impact that other key cases have had on how much holiday pay workers are entitled to receive Since workers must not be discouraged from taking leave, the pay they receive while absent must generally correspond to what they would …
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Working time: Overtime – holiday pay and other pitfalls for unwary employers

Mark Stevens examines the latest decision on whether to include overtime in holiday pay calculations and provides some tips to manage other tricky issues created when staff work extra hours ‘The Employment Appeal Tribunal found that if workers are contractually obliged to do overtime, it would be perverse to hold that their pay for this …
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Holiday pay: The never-ending story continues

The ECJ has held that employers‘ liability to compensate workers for unpaid holiday where they have been wrongly classified as self-employed can span the entire engagement, explain Katie Clark and Paul McGrath ‘Holiday pay had to be calculated in a way that corresponded with a worker‘s “normal remuneration“, including all components intrinsically linked to the …
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Annual Leave: More holiday headaches for employers

Eleanor Boyd and Michael Halsey share some practical tips on managing employees’ annual leave in light of the Ryanair debacle and recent holiday pay decisions ‘Employers must be careful not to discourage employees from taking holiday or overlook those who consistently do not take their holiday entitlement.’ Many readers will have seen (and possibly been …
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Holiday Pay: Unlocking the commission payments puzzle

Helen Cookson and Anna Scott analyse the EAT’s decision in the long-running case of Lock v British Gas Trading ‘Key to calculating a week’s pay under the ERA is to work out which subcategory the employee falls into. For example, do they have normal working hours and, if so, does pay vary according to the …
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Working Time Regulations: Calculating holiday pay after Lock

An employment tribunal has recently determined that it is necessary to add words into the Working Time Regulations 1998 to resolve a conflict over holiday pay in EU and domestic law. Rebecca McGuirk discusses the case ‘The ECJ held that as the commission was intrinsically linked to the performance of tasks that Mr Lock was …
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Holiday Pay: The next chapter

The government’s attempt to limit claims for unpaid holiday could be undermined by a new ruling, warns Louise Mason ‘From 1 July of this year, the limitation period for unlawful deductions claims is restricted to two years from the date of presenting the claim.’ In the wake of the ruling in Bear Scotland v Fulton …
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Holiday Pay: The Bear necessities

Christopher Bushnell discusses what employers and their advisers need to know about the EAT’s latest ruling on holiday pay ‘Many employers have been reluctant to address holiday pay issues until the courts provide greater clarity. The situation is, to some extent, clearer, but all issues are likely to be subject to appeal.’ Over recent years, …
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Working Time Regulations: Holiday pay should include commission

Calculating holiday pay has just become even harder, thanks to the latest in a line of ECJ cases on the issue, reports Stefan Martin ‘The English courts will need to determine how to apply the ECJ’s decision in practice. Any clarification they provide could result in changes to the Working Time Regulations.’ The Working Time …
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