Holiday pay: Holiday pay must be 'true addition' to contractual rate of pay
This report relates to 1 case(s)
In Smith v AJ Morrisroes & Sons Ltd and other appeals, the EAT holds:
- The guidelines set out by the EAT in Marshalls Clay  IRLR 552 require that "there must be mutual agreement for genuine payment for holidays, representing a true addition to the contractual rate of pay for time worked." This is evidenced by a refined version of the factors set out as guidelines (a) to (e) in para. 37 of the Marshalls Clay judgment.