On November 4, 2014, the Employment Appeal Tribunal announced its eagerly awaiting ruling in the case of Bear Scotland Ltd. v. Fulton & anor and other consolidated holiday appeals. These cases addressed the requirement to include non-guaranteed overtime, where an employer is not contractually obliged to offer overtime pay but a worker is contractually obliged to perform overtime work if requested, when calculating holiday pay. The Tribunal’s decision limited the ability of employees to bring claims for arrears in holiday pay. The case may be appealed to the Court of Appeal.
Insolvency practitioners have been awaiting this decision as it will affect those insolvent companies whose employees were regularly required to work overtime. More details of the case are contained in our Labour and Employment briefing.