The following Employment Q&A provides comprehensive and up to date legal information covering:
The ECJ decision in Hein (which was principally about whether holiday pay under Article 7(1) of Directive 2003/88/EC, the Working Time Directive (WTD) should take into account periods of short-time working) is unlikely to significantly affect the position as regards whether overtime should be included in the calculation of holiday pay in the case of a worker with normal working hours, for the reasons set out below.
For information on whether a worker has ‘normal working hours’ or ‘no normal working hours’, see the Practice Note: Holiday pay, under the section headed ‘Calculating statutory holiday pay: general’.
The current position on overtime is set out in Practice Note: Holiday pay, under the sections ‘Guidance on statutory holiday pay following the Lock and Bear Scotland cases’ and ‘Calculating statutory holiday pay: overtime’.
In summary, the judgments of the Court of Appeal in Lock v British Gas Trading and of the Employment Appeal Tribunal (EAT) in Bear Scotland v Fulton, Dudley Metropolitan Borough Council v Willetts and Flowers v East of England Ambulance Trust potentially affect the calculation of statutory holiday, during the four-week basic entitlement to statutory holiday, in cases where the worker does have normal working hours. In such normal working hours
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