Overtime and Holiday Pay: the end of the debate?

Unite has confirmed that it will not appeal the Employment Appeal Tribunal (EAT) judgement in Bear Scotland Ltd v Fulton and Others (for our analysis of the case see https://devonshiresemployment.com/2014/11/06/eat-decide-on-overtime-and-the-payment-of-holiday-pay/).

Following the judgement in Bear Scotland, the EAT granted the parties the right to appeal. One ground, which the EAT considered arguable and of public importance, was whether claims would be out of time if there had been a break of 3 months or more between successive underpayments. It was initially indicated that Unite would appeal on this point. However, Unite has now confirmed that it will not.

What does this mean for employers and employees?

Well for the time being it provides a degree of certainty about how much liability employers face for claims relating to arrears of holiday pay. However Bear Scotland remains open to challenge by another party in the future. It is also worth noting that the government has set up a task force to assess the impact of the judgement, which opens the possibility of the matter being legislated on at some point in the future.

For further information on this case or holiday pay generally please contact Ronnie Tong or your usual contact in the Employment Team at Devonshires.

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