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Wages Act: Wages properly payable under contract

This report relates to 2 case(s)

In two recent cases, the Court of Appeal and the EAT determine what sums were properly payable to employees under their contracts of employment for the purposes of the Wages Act 1986. In Devon General Ltd v Seeney, the Court of Appeal holds that the employee was entitled on retirement to accrued holiday pay (compensating for the fact that he had been allowed no leave during his first year of employment) calculated on the basis of his holiday entitlement at the time of termination. In McRuary v Washington Irvine Ltd, the employer fundamentally breached the contract of employment by cutting the employee's guaranteed overtime pay.