In Lock v British Gas Trading Ltd  IRLR 648 ECJ, the ECJ ruled that art.7 of the Working Time Directive requires that notional commission payments should be included in a worker's pay to compensate for commission that he was prevented from earning while on annual leave.
In The Sash Window Workshop Ltd and another v King  IRLR 348 EAT, the EAT allowed an appeal against a tribunal's ruling that a worker was entitled to pay in respect of untaken holiday that had accrued over more than 10 years up to termination.
On its return from the European Court of Justice (ECJ), the employment tribunal in this important case has read an extra subsection into the Working Time Regulations 1998 (SI 1998/1833) to comply with the Working Time Directive (2003/88/EC).
In Bear Scotland Ltd and others v Fulton and others; Hertel (UK) Ltd v Woods and others; Amec Group Ltd v Law and others  IRLR 15 EAT, the EAT held that payment in respect of overtime that the worker is obliged to work when it is available, but that is not guaranteed by the employer, constitutes part of the worker's normal remuneration and as such should be included in the computation of the worker's holiday pay.
In Bollacke v K+K Klaas & Kock BV & Co KG  IRLR 732 ECJ, the ECJ held that the Working Time Directive prevents the entitlement to pay for accrued but untaken leave being lost on the death of the relevant worker. In addition, the right to claim payment in respect of such accrued but untaken leave does not attach to the person of the worker who has died, but can be claimed by the worker's estate.
The Employment Appeal Tribunal (EAT) has suggested that workers should be allowed to carry over untaken holiday into the next year if they are genuinely prevented from taking annual leave for "reasons beyond their control" other than sickness absence.
The Employment Appeal Tribunal (EAT) has held that regular non-guaranteed overtime should be included in holiday pay calculations, but the EAT has limited the potential for workers to succeed with claims for historical non-payment of holiday pay.
HR and legal information and guidance relating to annual leave and holiday pay.