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CWU lodge formal claim with Royal Mail over calculation of holiday pay under Working Time Directive

The Communication Workers Union (CWU) has announced it has lodged a formal claim for future entitlements and back pay with Royal Mail following three Employment Tribunal cases regarding the Working Time Directive.

The Communication Workers Union (CWU) has announced  it has lodged a formal claim for future entitlements and back pay with Royal Mail following three Employment Tribunal cases regarding the Working Time Directive. The cases relate to the calculation of statutory holiday pay, ruling that ad hoc overtime should now be included. The ECJ ruled Lock v British Gas Trading Ltd in May 2014 that remuneration must take into account additional payments, including overtime, when calculating employees pay during holiday periods. Appeals have been lodged in two of the tribunal cases, while the third employer settled the claim. The CWU indicate that legal advice received from its lawyers suggests that ultimately, the tribunal rulings are likely [given the Lock judgment], though not certain, to be confirmed as the correct interpretation of this particular aspect of the Working Time Directive. CWU report that “the CBI has warned that companies could face millions of pounds in compensation bills”.

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The aim is to provide summary information and comment on the subject areas covered. In particular, where employment tribunal and appellate court cases are reported, the information does not set out full details of all the facts, the legal arguments presented by the parties and the judgments made in every aspect of the case. Click on the links provided to access full details. If no link is provided contact us for further information. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, SM&B cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.

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