Page 32 - BOSS Today Issue 25

HR

OVERTIME &

HOLIDAY PAY:

THE END OF

THE ROAD?

On 4 November 2014 the long-awaited decision of the Employment Appeal

Tribunal (EAT) in the case of Bear Scotland v Fulton & Others was released.

he Tribunal had to decide to the 20 days holiday covered
Twhether non-guaranteed by the Working Time Directive.
overtime (that is, overtime Any holidays above that can
which the employer does not be treated as normal. Finally, it
have to offer, but the employee would be worth contacting your
must work if offered) should local BOSS HR Adviser if you
be included when calculating need continued support on this
holiday pay. The question rested issue.
on whether such overtime Whilst waiting to see the
was ‘intrinsically linked’ to their outcome of any appeal,
performance and remuneration, members may want to review
as described in 2012 by the current overtime rates – could
European Court of Justice in the you reduce the amount of
case of British Airways v Williams. complicated systems to keep representatives knocking on overtime done? Also, initiate a
The EAT’s answer was that yes, track of each individual’s pay their doors over the coming general audit on holiday pay
it was intrinsically linked, and over each 12-week period. weeks wanting to open levels, as well as calculate the
should be included. By way of However, some comfort can negotiations. What should their effect of having to include
contrast, items such as expenses be drawn from the fact that response be? voluntary overtime in the
are not intrinsically linked. the EAT severely restricted any Firstly, point out to the future. After all, forewarned is
The howls of pain that backdating exercise. There were representatives that this decision forearmed!
greeted this decision are fears that claims for back pay may well be appealed, possibly
understandable. It means may run all the way back to all the way up to Europe, in n FOR FURTHER ADVICE
that any employer who bases 1998, but the EAT has in fact which case any final decision ON THIS SUBJECT, PLEASE
holiday pay purely on basic restricted it to a maximum of on the matter is probably years CONTACT THE BOSS HR
pay may have to update three months. away. Secondly, bear in mind TEAM ON 0845 450 1565.
those calculations and install Employers may find employee that this decision only relates

32 BOSS TODAY | December 2014/January 2015

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