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Legal Minds

7 November 2014 / by / in

Fulton v Bear Scotland Ltd – The Cost of Holiday Pay?

The employment appeal tribunal in the case of Bear Scotland has this week decided that overtime payments must be taken into account when calculating holiday pay. 

 There are limits on how much holiday pay can be claimed retrospectively.   Employees or workers will not be able to bring a claim more than three months after the last incorrect payment.

 Employers will feel that this decision goes too far, while employees/workers may feel that it does not go far enough, especially with regard to the limits on how far back they can claim.

 Although this decision is consistent with the Court of Justice of the European Union ruling in Lock that commission payments must be reflected in holiday pay, it will probably be appealed and we may not for years get a definitive answer as to the extent of the entitlement to employees/workers or the exposure to employers. We have not therefore heard the last word on the issue of the inclusion of overtime in holiday pay.