Important holiday pay claim settles out of court

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In our Summer Employment Newsletter we ran an article about the widely anticipated case of Neal v Freightliner, which was due to be heard at the Employment Appeal Tribunal (EAT) today. It appears that the case may have settled out of court.

Neal v Freightliner had been due to give important guidance on whether Employers are obliged to include an element for voluntary overtime worked by employees when calculating holiday pay entitlements. Mr Neal was arguing that an element for voluntary overtime worked should be factored into his holiday pay calculation whereas his employer, Freightliner, was arguing that only compulsory overtime should be included. Mr Neal succeeded in his claim at the employment tribunal but Freightliner had appealed to the EAT.

If, as suspected, the case has settled the settlement is likely to be confidential and unfortunately employers will be without any further guidance on that discreet point. Nevertheless three other cases concerning whether other additional bonuses and allowances should be included in holiday pay are going ahead and employment lawyers and employers alike are hoping that the decisions in those cases will offer some much sought after guidance. Those cases – namely Bear Scotland Ltd v Fulton and Baxter, Hertel (UK) Ltd v Wood and others and Amec Group Limited v Law and others – are listed to be heard over three days starting today. As soon as we have further news on those cases we will let you know.

If you would like to discuss the difficult issue of holiday pay, any other employment law matter, or you would like to sign up to our regular newsletters, please contact us on 01737 854500 and ask to speak to a member of our employment team.


Although correct at the time of publication, the contents of this newsletter/blog are intended for general information purposes only and shall not be deemed to be, or constitute, legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article. Please contact us for the latest legal position.

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