In the European Court of Justice (ECJ) there had been a decision in British Airways plc v Williams and ors 2012 ICR 847, ECJ stating this was to occur, citing the Working Time Directive. The Working Time Regulations give effect to the directive in UK law – so with this decision the Tribunal agreed and by construing the Working Time Regulations 1998 SI 1998/1833 so as to disapply Ss.223(3) and 234 of the Employment Rights Act 1996 when calculating holiday pay.
So Employers – keep a weathered eye on overtime and shift allowances – if these are regular payments to your staff then they are to be included when calculating holiday pay.
For employment advice – speak to the specialists at Quality Solicitors Dunn and Baker – where business matters.
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