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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