Bear Scotland Ltd & Others v Fulton & Others UKEATS/0047/13

Employment Appeal Tribunal delivers landmark judgment on holiday pay that could affect over 5 million workers.

The Employment Appeal Tribunal has today handed down its judgment in a landmark case, which establishes that employers must factor in a worker’s overtime when calculating their entitlement to holiday pay. The EAT held that Article 7 of the Working Time Directive required non-guaranteed overtime to be paid during annual leave and that the relevant provisions in the Working Time Regulations 1998 should be interpreted so as to comply with this reasoning. The decision will undoubtedly have financial implications for businesses across the UK but the judgment also goes some way in allaying previous fears that employees will be able to bring claims for back pay spanning several years.

Click here to read Tom Kirk’s analysis of the judgment and its implications.

With 17 members practising in employment law, Ely Place Chambers regularly advises both employer and employee clients on matters of holiday pay and unlawful deductions from wages. Should you have any queries about the full implications of this judgment or require a review of holiday pay policies please contact our clerks (clerks@elyplace.com) who would be happy to assist.

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Bear Scotland Ltd & Others v Fulton & Others UKEATS/0047/13