1. 1. Employment LawPodcastNovember 2014
2. 2. Chris NagelDirector/Head of HR
3. 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. 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. 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. 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.
7. 7. Contact UsEmployee Management LimitedSuite 8, Stone Cross PlaceStone Cross Lane NorthLowtonWarringtonCheshireWA3 2SHDD: 01942 369675Tel: 01942 727200Mob: 07739 596426Fax: 01942 727225Email: chrisn@employeemanagement.co.ukWeb: www.employeemanagement.co.uk