Yesterday saw the Employment Appeal Tribunal give its decision in Bear Scotland Ltd v Fulton & anor and the other consolidated holiday pay appeals.
It confirmed that non-guaranteed overtime should be taken into account when calculating holiday pay – or at least for the purposes of four out of the 5.6 weeks’ statutory annual leave that a worker is entitled to.
Crucially, however, the EAT limited the scope for workers to bring claims for historical underpayments of holiday pay. It said that workers could not go back and claim all arrears of holiday pay as being unlawful deductions from their pay if there had been a gap of more than 3 months between any of the alleged underpayments.
The Business Secretary, Vince Cable, has since announced that he will be setting up a taskforce to assess the implications of this decision for employers.
See the Alert from the Labour & Employment team for full details of this decision.