In May Gurney Ltd v Adshead and others EAT/0150/06 the Employment Appeal Tribunal holds that the remuneration of employees entitled to a perfomance bonus "does vary with the amount of work done". Accordingly the amount of a week's pay for the purpose of calculating holiday pay will be determined by taking the employees' average pay over the 12 weeks preceding their holiday.
In British Airways plc v Noble and another [2006] IRLR 533 CA, the Court of Appeal has held that a reduction of 4/52 in employees' shift pay, spread evenly throughout the year, is not a breach of the Working Time Regulations 1998.
In Robinson-Steele v RD Retail Services Ltd and other cases Joined Cases C-131/04 & C-257/04 ECJ, the European Court of Justice held that it is unlawful to "roll up" holiday pay so that, in effect, workers' minimum period of paid annual leave is replaced by an allowance, paid in instalments throughout the year.
In Commissioners of Inland Revenue v Ainsworth and others, the Court of Appeal holds that workers absent through long-term sick leave who have exhausted their entitlement to sick pay are not entitled to four weeks' holiday pay when they have done no work during the leave year.
Karen Smith and Sophy Robinson of Addleshaw Goddard bring you a comprehensive update on the latest decisions that could affect your organisation, and provide advice on what to do about them.