Bamsey & Ors v Albon Engineering & Manufacturing Plc

Bamsey & Ors v Albon Engineering & Manufacturing Plc

Regulation 16 of the Working Time Regulations 1998, in incorporating sections 221-224 of the Employment Rights Act 1996 for the calculation of holiday pay, also incorporates section 234's definition of 'normal working hours'. Only contractually fixed and mutually obligatory hours, including guaranteed overtime, count as 'normal working hours'. The Directive does not require inclusion of non-guaranteed overtime in holiday pay, and the Regulations are consistent with the Directive. The appeal is dismissed.

Parties
Appellant: D. Bamsey & Ors; Respondent: Albon Engineering & Manufacturing PLC
Jurisdiction
England and Wales
Judgment Date
25 March 2004
Procedural Posture
Appeal / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Calculation of Holiday Pay, Normal Working Hours, Overtime Pay, Interpretation of Employment Rights Act 1996, Implementation of EU Directive 92/104
Employment Law Labour Law Calculation of Holiday Pay Normal Working Hours Overtime Pay Interpretation of Employment Rights Act 1996 Implementation of EU Directive 92/104

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Parties

D. Bamsey & Ors

Appellant

Albon Engineering & Manufacturing PLC

Respondent

Procedural Posture

Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 What is the meaning of 'normal working hours' under sections 221-224 of the Employment Rights Act 1996 for calculating a week's pay?
  2. 2 Does 'normal working hours' for annual leave pay under regulation 16 of the Working Time Regulations 1998 include compulsory but non-guaranteed overtime?
  3. 3 Should regulation 16 be purposively construed to conform to Article 7 of Council Directive 92/104, potentially overriding section 234's definition of 'normal working hours'?

Ratio Decidendi

Regulation 16 of the Working Time Regulations 1998, in incorporating sections 221-224 of the Employment Rights Act 1996 for the calculation of holiday pay, also incorporates section 234's definition of 'normal working hours'. Only contractually fixed and mutually obligatory hours, including guaranteed overtime, count as 'normal working hours'. The Directive does not require inclusion of non-guaranteed overtime in holiday pay, and the Regulations are consistent with the Directive. The appeal is dismissed.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed
  • No order as to costs