Clarke v Frank Staddon Ltd. [2004] EWCA Civ 422 (28 April 2004)

Clarke v Frank Staddon Ltd. [2004] EWCA Civ 422 (28 April 2004)

Rolled-up holiday pay arrangements, where a specific sum or percentage is allocated and agreed (particularly via collective agreement), do not violate Article 7 of the Working Time Directive or the Working Time Regulations, provided they do not substantially obstruct the right to paid annual leave. The timing of payment is not prescribed by the Directive. The EAT in England is not legally bound by decisions of the Scottish Court of Session.

Citation
[2004] EWCA Civ 422
Parties
Appellant: Mr M. J. Clarke; Respondent: Frank Staddon Ltd; Appellant: Mr J. Caulfield; Appellant: Mr C. Caulfield; Appellant: Mr K. V. Barnes; Respondent: Marshalls Clay Products Ltd
Jurisdiction
England and Wales
Judgment Date
28 April 2004
Procedural Posture
Appeal From Employment Appeal Tribunal / Court of Appeal (civil Division) Judgment
Outcome
Appeals dismissed (subject to remission in Clarke for factual clarification)
Legal Topics
Working Time Directive, Holiday Pay, Rolled Up Holiday Pay, Collective Agreements, Interpretation of EU Directives, Precedent and Jurisdiction
Employment Law European Union Law Working Time Directive Holiday Pay Rolled Up Holiday Pay Collective Agreements Interpretation of EU Directives Precedent and Jurisdiction

Case Brief

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Parties

Mr M. J. Clarke

Appellant

Frank Staddon Ltd

Respondent

Mr J. Caulfield

Appellant

Mr C. Caulfield

Appellant

Mr K. V. Barnes

Appellant

Marshalls Clay Products Ltd

Respondent

Procedural Posture

Appeal From Employment Appeal Tribunal / Court of Appeal (civil Division) Judgment

Legal Issues

  1. 1 Are 'rolled-up' holiday pay arrangements compatible with Article 7 of the Working Time Directive and the Working Time Regulations?
  2. 2 Does the Employment Appeal Tribunal in England have to follow a decision of the Inner House of the Court of Session on the construction of UK-wide legislation?

Ratio Decidendi

Rolled-up holiday pay arrangements, where a specific sum or percentage is allocated and agreed (particularly via collective agreement), do not violate Article 7 of the Working Time Directive or the Working Time Regulations, provided they do not substantially obstruct the right to paid annual leave. The timing of payment is not prescribed by the Directive. The EAT in England is not legally bound by decisions of the Scottish Court of Session.

Court Disposition

Appeals dismissed (subject to remission in Clarke for factual clarification)

Orders

  • Appeals dismissed
  • In Clarke, matter remitted to Employment Tribunal for factual findings on allocation of holiday pay and continuity of employment