Freightliner holiday pay case settles but three other cases continue

Neil v Freightliner, a key case on holiday pay, has settled in the Employment Appeal Tribunal. In this case the tribunal decided that Mr Neal`s holiday pay should have been calculated by reference to his normal earnings, which included overtime and shift pay. The case has been appealed and was expected that it would decide whether overtime should be included in the calculation of holiday pay. However, this week, the Employment Appeal Tribunal has been hearing three other cases on the same issue:

•          Bear Scotland v Fulton and Baxter;

•          Hertel (UK) v Wood and others;

•          Amec Group v Law and others.

The decision that the EAT will take in these cases will have major consequences for many employers. It is likely that judgment will be reserved but we will update readers as soon as it is available. We anticipate that this is unlikely to be before September.

For more detailed guidance see our Holiday Pay Time Bomb article.