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Landmark judgment in Employment Appeal Tribunal case paves the way for incremental increases in holiday pay

The important judgment of the UK's Employment Appeal Tribunal (the "EAT") in Bear Scotland Ltd & ors v Fulton & ors, considered alongside Hertel (UK) Ltd v Wood & ors and Amec Group Ltd v Mr Law and ors, casts new light on the question of whether payments for overtime work should be factored into the equation by employers when calculating the holiday pay of their employees and workers.

The EAT ruled that Bear Scotland Ltd's failure to include payments for "non-guaranteed" overtime work when calculating their holiday pay constituted unauthorised deductions from wages.

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