The Supreme Court has remitted to the employment tribunal the case brought by British Airways pilots in relation to the inclusion of flying allowances in the calculation of their holiday pay, following the results of the reference to the European Court of Justice on whether or not "normal remuneration" during a period of annual leave should include allowances on top of basic pay.
In this case, the retailer Boots took a business decision to reduce long-serving workers' double time for Sunday and bank holiday working to time-and-a-half, but the employment tribunal found this to be an unlawful variation of the workers' terms and conditions of employment.
The European Court of Justice has considered whether or not "normal remuneration" during a period of annual leave should include allowances on top of basic pay, in the context of a dispute over how the holiday pay of British Airways pilots who are paid flying allowances as well as basic pay should be calculated.
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