Court of Appeal considers 'rolled-up' holiday pay

May 6, 2004

Court of Appeal considers ‘rolled-up’ holiday pay

The Court of Appeal has considered the thorny issue of ‘rolled-up’ holiday pay.

According to barrister Daniel Barnett, Laws LJ held in the conjoined appeals of Clarke v Staddon and Caulfield v Marshalls Clay Products that ‘rolled-up’ holiday pay complies with the EU Working Time Directive.

He examined the policy behind the Directive and relied heavily on the fact that the Directive does not state that the payment has to be received at the time the holiday is taken.

He asked the question: does rolling-up holiday pay undermine or negate the relevant article of the EU Working Time Directive, and held that it did not. He then went to hold that the Working Time Regulations 1998 did allow for rolled-up holiday pay.