In Fulton and others v Bear Scotland UKEATS/0047/13/BI (4 November 2014) the Employment Tribunal found that holiday pay must include amounts normally paid as overtime.
The appeals were test cases. The issue was whether Bear Scotland which carried out road construction and maintenance had made unauthorised deductions from the wages of two of its employees by failing to include overtime and other payments associated with their work in calculating the holiday pay due to them.
Under the Working Time Directive (2003/88/EC) each employee is entitled to four weeks’ paid annual leave which cannot be replaced by an allowance in lieu (except when employment is terminated). This leads to complexities for employees whose remuneration is made up of different elements as the purpose of the Directive is ‘to put the worker during such leave in a position which is as regards remuneration...
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")