Martin Walsh wrote: ↑29 Nov 2021, 19:18
Whilst I am not going to get into a debate over the merits or not of the Average Holiday Pay Agreement , it is important to state that the law change on 7th April did not apply workers with regular hours.
There is no statutory reference period when calculating holiday pay for workers with normal working hours. Case law suggests that holiday pay for these workers should be based on an average over a period that is ‘representative’ i.e. one which reflects normal working. In practice.
So whilst it has been changed for agency workers , zero hour workers , term time workers and other irregular work hours to an average of 52 weeks it does not cover Royal Mail or other companies hours who have fixed and regular hours.
That is not quite true in theory or in practice. The issue of overtime (guaranteed, non-guaranteed and voluntary), commission and bonuses has been dealt with in numerous Employment Appeal Tribunals since British Gas v Lock/British Airways v Williams (albeit Williams was based on the Aviation Directive and not the Working Time Directive).
The result of the above is that holiday pay should be based on “pay that is normally received”.
No one can possibly argue that posties (particularly part time ones) don’t do regular overtime.
To get pedantic, and the law is just that, someone on 25 hour contract over 5 days for example does not have regular hours as they can be asked to start at different times depending on need and so they are not on fixed hours.
In addition to numerous EAT decisions, the ECJ pretty much left employers with two scenarios re holiday pay: 1 pay what is normally received or 2 pay the average over, what is now since 6 April 2020, 12 months.
As a final point on your “not regular” argument, the EAT in Dudley v Willets and confirmed in East of England Ambulance NHS Trust v Flowers made clear that overtime worked one in every four or five weeks was sufficiently regular to count. No 8 hour minimum, just some overtime once every 4/5 weeks. If a bit of overtime once every 4/5 weeks counts then the multiple hours racked up by posties must all count.
The CWU bailed too early and seemingly did so based on your ‘regular’ argument. Their case was totally winable.
Incidentally the law change in April 2020 merely changed the reference period from 12 weeks to 12 months. Holiday pay was still supposed to be averaged out prior to April 2020, just over a shorter reference period.