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Working Time Regulations: Holiday pay must be paid in association with leave entitlement

This report relates to 1 case(s)

Key points

  • In MPB Structures Ltd v Munro 1.4.03 Court of Session, the Court of Session holds that under the Working Time Directive and Regulations, it is intended that payment for annual leave should be in association with the taking of leave entitlement.
  • Therefore, a provision in a contract of employment, which purported to allow an employer to pay holiday pay by means of an additional "rolled up" element to basic pay, was void.