I am sure you will have heard talk of the recent holiday pay and overtime ruling, but what does it actually mean to you and your business?
The main case that has been quoted in the media is Bear Scotland Ltd v Fulton. This case showed that regular overtime, that employees were obliged to do, needed to be included in the payment of holiday pay.
How does this apply to your business? The follow questions need to be answered:
- Is overtime "sufficiently regular" and are employees obliged to it?
- Do you pay additional contractual holiday or just statutory? The two are treated differently in relation to overtime payments.
- What risks do you expose yourselves to by not doing anything following the recent case law?
- In practice how are your holiday pay and overtime procedures run?
- How far back would you need to go if an employee was to claim backpay?
- Would you be able to rely on the 3 month gap ruling for backpay?
- Do you also need to consider other variable pay elements in your holiday pay calculations?
- Do you treat different groups of staff differently in relation to overtime and holiday pay?
The conflict between European case law and the wording on the Working Time Regulations may have left you in a quandary. Park City have a team of specialists who would be able to help you answer some of these questions and give you a better understanding of how the recent case law may mean your business could be exposed to certain risks.
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