Ever Thought Of Going All Inclusive?

The Supreme Court has decided that holiday pay for employees shouldn't always be confined to basic pay and may also need to include any additional supplementary payments. Reema Jethwa from our Employment Team explains.

The case heard by the Supreme Court was called British Airways v Williams. Although it involved claims by pilots, the decision will have wider implications for workers generally. In the Williams case pay for pilots at BA pay had three elements: basic pay and two supplementary payments which varied according to the amount of time that they spent flying.  The supplementary payments included expenses that were not taxable.

Pilots were entitled to paid annual leave but there was no guidance as to how this should be calculated.