Holiday Pay The Latest Position

    View Authors December 2015

    All eyes will shortly be focussed on the Employment Appeal Tribunal as it looks again at holiday pay on 8 and 9 December in British Gas v Lock

    Followers of this case will recall that British Gas is arguing that: (i) the Leicester Employment Tribunal was wrong to decide that Bear Scotland, a case about overtime, had any bearing on how holiday pay should be calculated in a case about commission; and (ii) the EAT in Bear Scotland was wrong to conclude that the Working Time Regulations 1998 could be interpreted in such a way as to give effect to EU law requirements regarding the calculation of holiday pay.

    We will of course be following the outcome of this appeal and will keep you updated. Two things seem more or less certain – we won’t see the decision for some months and when we do, one way or the other, it will be appealed again. Those hoping for some definitive settling of the law are likely to be disappointed. 

    In the meantime you may be interested in our recent experiences on the holiday pay front to give you a flavour for: (i) how tribunals are dealing with holiday pay claims; and (ii) how other employers are tackling the holiday pay issue.