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British Airways plc v Williams and Others (No 2) 2012 UKSC
43
In this case the Supreme Court considered whether pilots were
entitled to receive supplementary payments in addition to their
basic pay during periods of annual leave. The Supreme Court
overturned the Court of Appeal's decision that by paying
airline pilots basic pay only during periods of annual leave
without taking into account contractual supplementary payments this
was not a breach by BA of Regulation 4 of the Civil Aviation
(Working Time) Regulations 2004.
Mr Williams was the lead claimant for some 2,750 pilot claimants
employed by BA.The pilots were successful before the employment
tribunal and the appeal tribunal but unsuccessful before the Court
of Appeal.They then appealed to the Supreme Court who referred the
matter to the ECJ. The ECJ stated that it was for the National
Court to determine into which of the two categories any payment
falls.
The claim has now been remitted to the employment tribunal to
assess the appropriate payments to be included in respect of flight
pay supplements and to consider the extent to which time away from
base allowances were intended exclusively to cover costs and
therefore should be excluded from holiday pay.The case brings into
question whether the "week's pay" regime for
calculating holiday pay under the Working Time Regulations is
consistent with the requirement for a worker to receive normal
remuneration as interpreted by the ECJ.It is BA's argument that
the time away from base allowances was intended
exclusively to cover costs and therefore should not be
included in the calculation of holiday pay.
Key point: The case could have wider
implications for the calculation of holiday pay under the Working
Time Regulations which requires a worker to receive
"normal remuneration" during paid holiday
leave.
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