The High Court has ruled that retrospective changes to the LGPS exit credits regime were lawful – and gave some helpful guidance around the new discretion to pay an exit credit.
Readers will recall that the Tribunal concluded in this case that a worker’s holiday pay ought to include overtime and premium payments when calculating the amount of basic remuneration. The Tribunal further suggested that any element of pay linked to the tasks required of the worker under the contract of employment, for which payment is received, should be included. The decision, one of the most significant in employment law for some time, suggests that employers may need to assess their holiday pay calculations, but with little further guidance or clarification from the Tribunal on how to achieve this, or what payments should correctly be included.
The decision of the Tribunal in Neal is not binding and the case was appealed to the EAT, the hearing taking place in Summer 2014. It was hoped that the much anticipated judgment would confirm the decision of the Tribunal and provide much needed clarity on the issues raised, including how to properly calculate holiday pay. This case has, disappointingly, has settled out of court.
The good news? The appeal hearing did go ahead in July 2014 in respect of the other cases that Neal had been joined with. When Anthony Collins Solicitors spoke with the Employment Appeal Tribunal, we were informed to expect a decision in October 2014. Therefore, watch this space for further updates in what now has the catchy case name of “Bear Scotland Ltd v Fulton and Baxter, Hertel (UK) Ltd v Wood and others and Amec Group Limited v Law and others”.
Previous issues of our briefings on the issue of holiday pay can be found by clicking the links below:
For more information
The Government has brought forward draft laws to allow independent schools to close the Teacher’s Pension Scheme to new joiners but to allow existing members to continue.
The Government has started consultation on the regulations providing the detailed framework for collective money purchase pension schemes.
In June we took on the challenge to become a Sepsis Savvy organisation - I'm really pleased to announce we've done it!
In 2020 the court rules were changed to require that all residential tenants must be given 14 days’ notice of an eviction. What happens though if the eviction is cancelled on the day?
We are delighted to announce that our private wealth law department has continued to maintain its Band 2 position in the latest edition of Chambers and Partners High Net Worth.
The new CHF is set to launch and open for applications with £4 million set to be allocated to community-led housing groups to support an increase the supply of affordable housing in England.
Charities, like other organisations, may be subject to or choose to voluntarily comply with the reporting requirements under the Modern Slavery Act 2015.
The draft regulations making it mandatory for anyone entering a registered care home in England to have been double vaccinated unless they are clinically exempt were made on 22 July 2021.
Doug Mullen and Michelle Knight discuss the recent judicial review of regulations changing the regime governing exit credits in the local government pension scheme.
To receive invitations to our events, as well as information and articles on legal issues and sector developments that are of interest to you, please sign up to Newsroom.