New holiday pay ruling
For some time now, following European decisions, employers have been unsure whether they are obliged to include overtime payments (particularly overtime which is not guaranteed and regularly worked) when calculating holiday pay. However, yesterday the Employment Appeal Tribunal has ruled on these points and found that it must be included.
It was clarified that:
An appeal to the Court of Appeal has been granted so it is not the end of the matter but for now employers are best advised to review and change their calculation of holiday pay if necessary.
If you need advice on this issue, please contact Alison Close on 01625 531676 or email email@example.com