Yesterday the Employment Appeal Tribunal made an important ruling with regard to holiday pay and overtime. The key points are:

1. workers are entitled to be paid a sum of money to reflect normal non-guaranteed overtime as part
of their annual leave payments

2. it applies only to the basic 4 weeks’ leave granted under the Working Time Directive, not the additional 1.6 weeks under regulation 13A of the Working Time Regulations

3. claims for arrears of holiday pay will be accepted but they will be out of time if there has been a break of more than three months between successive underpayments (subject to the reasonable
practicability test)

4. travel time payments, which exceed expenses incurred amount to additional taxable remuneration
and should also be reflected when calculating holiday pay.

The Government has announced they intend to create a new task force to assess the impact of the ruling. If this issue is likely to impact on your business please contact Nick Phillips on 01782 205000 or nick.phillips@beswicks.com