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EAT Rules Overtime Counts For Holiday Pay

Tuesday, November 4, 2014

GMB Welcome EAT Judgement That Overtime Pay Should Be Included In Pay For Holiday Leave

Members who did not get the same pay during holiday as during the rest of the year should contact union to be advises of their rights and to have claims assessed and taken forward says GMB

GMB commented on the EAT judgement that overtime pay is part of normal remuneration and to be included as such in the calculation of pay for holiday leave. See notes to editors for copy of press release from EAT.

Paul Kenny, GMB General Secretary, said “This judgment ensures that workers are properly paid for holidays and is a good and welcome result.

This judgment clarifies that voluntary overtime and time spent waiting for emergency call outs must be included in holiday pay calculations.

Members who did not get the same pay during holiday as during the rest of the year should contact GMB to be advises of their rights and to have their claims assessed and taken forward.

GMB look forward to a sensible discussion with employers who need to have a rethink about the way holiday pay is dealt with.

No doubt certain elements and interest will condemn the European Directive upon which this court decision is based that will give workers in the UK the extra pay they have been denied by UK employers and politicians for years.”

End

Contact Maria Ludkin 07956 632 657 or Martin Smith 07974 252 722 or Phil Whitehurst 07968 338810 or GMB press office at 07921 289880 or 07974 251 823

Notes to Editors

Press release from EAT 04 November 2014
 

Employment Appeal Tribunal judgment: Bear Scotland v Fulton (Working Time Directive)

Please find below summary.

Full judgment given today by the Employment Appeal Tribunals will be available shortly on Error! Hyperlink reference not valid.

SUMMARY: WORKING TIME REGULATIONS: HOLIDAY PAY

DAMAGES FOR BREACH OF CONTRACT; UNLAWFUL DEDUCTION FROM WAGES

The EAT held that Article 7 of the Working Time Directive is to be interpreted such that payments for overtime which the employees in two appeals before it were required to work, though which their employer was not obliged to offer as a minimum, is part of normal remuneration and to be included as such in the calculation of pay for holiday leave taken under regulation 13 of the Working Time Regulations 1998.  Those Regulations could be interpreted so as to conform to that interpretation.

An appeal by Bear Scotland was thus rejected, as were (on these issues) appeals by Hertel and Amec.

A further appeal by Hertel and Amec against the ET's findings that the Claimants could claim the consequent arrears of pay as being unlawful deductions from their pay under the ERA 1996 (on the basis that on each occasion holidays were not paid in accordance with the true interpretation of Article 7 and the WTR the deduction was one of a series of deductions) was allowed insofar as in any case a period of more than three months elapsed between such deductions.  Their appeal against a conclusion that contractual payments for PILON should include payment for 44 hours per week (including 6 hours overtime) also succeeded, upon a construction of the relevant contractual provisions.

A cross-appeal by the Claimants in Hertel and Amec succeeded against the ET's decision that taxable remuneration for time spent travelling to work did not fall within "normal remuneration" for the purpose of calculating holiday pay.

Appeal No. UKEATS/0047/13/BI

UKEAT/0160/14/SM

UKEAT/0161/14/SM

EMPLOYMENT APPEAL TRIBUNAL

FLEETBANK HOUSE, 2-6 SALISBURY SQUARE, LONDON, EC4Y 8JX



At the Tribunal on 30 July - 1 August 2014 Judgment handed down on 4 November 2014

Before THE HONOURABLE MR JUSTICE LANGSTAFF SITTING ALONE

(1) BEAR SCOTLAND LTD & OTHERS UKEATS/0047/13/BI                                 APPELLANTS
(2) HERTEL (UK) LTD  UKEAT/0160/14/SM
(3) AMEC GROUP LTD UKEAT/0161/14/SM

(1)MR DAVID FULTON AND OTHERS UKEATS/0047/13/BI                             RESPONDENTS
(2) MR K WOODS AND OTHERS UKEAT/0160/14/SM
(3) MR LAW AND OTHERS UKEAT/0161/14/SM


 


 

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