New EAT Decision

This decision has just been placed on the EAT website. It is currently unreported, but may be reported in due course.

Hill v Howard Chappel (HHJ Peter Clark, 20/3/02)
An employer is not entitled to deduct overpaid holiday from an employee's final salary payment, in the absence of a 'relevant agreement' under the Working Time Regulations 1998 authorising such a deduction.

Thus, on the facts, Mrs Hill had taken 15 days' holiday in the holiday year when, on a pro rata basis, she was only entitled to take 10 days. The employment tribunal, when awarding Mrs Hill her unpaid salary, gave credit to the employer for the 5 days' additional holiday. The EAT reversed this, holding that (unlike reg. 14(2) of the WTR 1998, where an employee is entitled to compensation for untaken holiday on termination of employment) an employer cannot have credit for overpaid holiday under the legislative framework.
• click here for the full transcript