Clarke v Frank Staddon Ltd.

Clarke v Frank Staddon Ltd.

Rolled-up holiday pay arrangements, where the allocation to holiday pay is clear and specifically agreed (including via collective agreement), do not violate Article 7 of the Working Time Directive or the Working Time Regulations. There is no requirement that payment for annual leave be made at the time leave is taken. The EAT in England is not bound by the Scottish Court of Session's decision in Munro.

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 / Court of Appeal Judgment on Appeal From Employment Appeal Tribunal
Outcome
Appeals dismissed; Court of Appeal upholds EAT's decision that rolled-up holiday pay arrangements in these cases do not violate the Directive or Regulations.
Legal Topics
Working Time Directive, Holiday Pay, Collective Agreements, Precedent, Interpretation of Directives
Employment Law European Union Law Working Time Directive Holiday Pay Collective Agreements Precedent Interpretation of Directives

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 / Court of Appeal Judgment on Appeal From Employment Appeal Tribunal

Legal Issues

  1. 1 Whether 'rolled-up' holiday pay arrangements violate Article 7 of the Working Time Directive and the Working Time Regulations
  2. 2 Whether payment for annual leave must be made at the time leave is taken or can be included in ordinary pay
  3. 3 Whether the EAT in England is bound by a decision of the Scottish Court of Session on the same statutory regime

Ratio Decidendi

Rolled-up holiday pay arrangements, where the allocation to holiday pay is clear and specifically agreed (including via collective agreement), do not violate Article 7 of the Working Time Directive or the Working Time Regulations. There is no requirement that payment for annual leave be made at the time leave is taken. The EAT in England is not bound by the Scottish Court of Session's decision in Munro.

Court Disposition

Appeals dismissed; Court of Appeal upholds EAT's decision that rolled-up holiday pay arrangements in these cases do not violate the Directive or Regulations.

Orders

  • Clarke remitted to Employment Tribunal to determine factual issues regarding allocation of holiday pay before August 2001.
  • Court to consider making a reference to the European Court of Justice for clarification, or to await the outcome of an existing reference from Leeds Employment Tribunal.