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Employment A-Z

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Working Time - Holiday Pay

British Airways PLC v Williams and others [2012] UKSC 43 SC

Williams and others v British Airways PLC Case C-155/10 ECJ

Any aspect of pay that is intrinsically linked to the performance of tasks required to be carried out must be included in the calculation of the worker's total remuneration and therefore, holiday pay.

This case was considered under the Civil Aviation (Working TIme) Regulations 2004 which implements the Civil Aviation Directive 2000. Under this legislation the concept of paid annual leave is not defined, unlike in the Working Time Regulations 2998 which refers to a detailed statutory scheme for ascertaining a 'week's pay' as set out in the Employment Relations Act 1996.

The SC referred the matter to the ECJ for consideration of whether or not pilots' flying allowances (designed to compensate them for the amount of time that they spend away from their base airport) should be included in holiday pay. It concluded that any aspect of pay that is intrinsically linked to the performance of the tasks that he worker is required to carry out and in respect of which a monetary amount si provided must be included in the calculation of the worker's total remuneration and, therefore, their holiday pay calculation.

The SC was, therefore, able to interpret the concept of 'paid annual leave' and a 'week's pay' under the Civil Aviation (Working Time) Regulations 2004 to include the allowances.