In Marshalls Clay Products Ltd v Caulfield and Others, the EAT in England
and Wales will consider the correctness of the Scottish Court of Sessions’
ruling in Munro v MPB Structures that rolled-up rates of pay cannot be used to
pay holiday pay under the Working Time Regulations (WTR). It will also rule on
whether, even if Munro is correct, employers can set off the amount paid under
the hourly rate against any liability for non-payments of the entitlement under
the WTR. The case may also provide guidance on the practical consequences for
employers, such as whether employers can cease paying the holiday pay element
of the hourly rate and make payment at the resulting reduced hourly rate for
holidays at the time they are taken.
Watch this space
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