Rogers & Norton News

Pack more into holiday pay?

Friday, September 20, 2013

Neal v Freightliner Limited

An employment tribunal has potentially broadened the scope of statutory holiday pay.

In Neal v Freightliner it held that a freight worker was entitled to have his voluntary overtime taken into account when his employer calculated his holiday pay. The overtime work was closely connected to the contractual duties.

What does this mean for employers? Well, it’s worth thinking about taking workers’ overtime and shift premium payments into account when calculating holiday pay. But until the Neal case is heard by a higher court (the Employment Appeal Tribunal would be the next port of call) it creates yet another grey area for employers and for other tribunals which are not bound to follow the decision.