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Employment law moves on!

In the latest case of Neal v Freightliner Ltd it was decided that a freight worker was entitled to have his holiday pay calculated not on his basic pay but on his overtime and shift allowances as well.

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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