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The Employment Appeal Tribunal (EAT) has upheld a decision dismissing an employee’s claim of unauthorised wage deductions in a dispute involving bank holiday pay and time off in lieu. The case, Bucur v The Soho Sandwich Company Ltd, offers important clarification for both employers and employees around contractual entitlements and the interpretation of holiday rights.
The Background
The employee’s contract stated that he could be required to work on bank holidays, in which case he would receive double pay and an alternative day off in lieu. When he worked on a bank holiday, he received an additional day's pay on top of his regular monthly salary. However, he argued that this only amounted to single pay, claiming the additional payment was just his standard daily wage and not true “double time.”
He brought a claim before the Employment Tribunal (ET), alleging unauthorised deductions from wages. The Tribunal disagreed, finding that his monthly salary already covered his basic pay for bank holidays worked, and the extra day’s pay constituted the “double pay” referred to in his contract.
Time Off in Lieu and Holiday Rights
The employee also claimed that he should have received a day off in lieu and that not receiving it amounted to an unlawful deduction from wages. However, the ET ruled that a day off in lieu is not considered “wages” under the relevant legislation, and so could not form the basis of a deduction claim.
He further claimed that he had not been allowed to carry over unused holiday leave. The ET found that he had taken all his statutory annual leave under Regulation 13 of the Working Time Regulations 1998. The carry-over provisions under Regulation 13A did not apply, as they concern additional, non-statutory leave.
The Appeal
The employee appealed the decision, focusing on the failure to grant time off in lieu. However, the EAT found no legal error in the original judgment and dismissed the appeal. He also attempted to introduce a new argument that his employment documents formed a "workforce agreement" allowing leave carry-over under Regulation 13A(7), but the EAT rejected this, as the point had not been raised before the ET and no valid reason was provided for the late argument.
Key Takeaways for Employers and Employees:
Clearly worded employment contracts are crucial for avoiding disputes over pay and time off.
Time off in lieu is a contractual benefit, not a wage, and may not be recoverable through wage deduction claims.
Statutory holiday rights and additional leave entitlements are treated differently under the law.
New legal arguments should be raised at the earliest stage of proceedings, or they risk being excluded on appeal.
If you need guidance on employment contracts, wage disputes, or working time regulations, our employment law team is here to help.