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4 November 2014 0 Comments
Posted in Employment, Opinion

Breaking News…….Extra holiday Cash for Workers

Author headshot image Posted by , Partner

A ground breaking court ruling has paved the way for millions of UK workers to claim additional holiday pay.

It is estimated that around five million workers could benefit from today’s controversial judgment in the Employment Appeal Tribunal. But business groups say the decision may have dire consequences for UK companies which should now factor in an employee’s  overtime pay when calculating holiday pay.  In light of the significant ramifications, an appeal to the Court of Appeal is highly likely.

Richard Woodman, Employment Partner, said: “This is an extremely important decision for workers and UK companies alike.  Up until now, only basic pay counted when calculating holiday pay.  However the ruling now means that an employer should include a person’s over time remuneration when calculating holiday pay.  If claims are back dated, employers will have to fork out millions if not billions of pounds in additional holiday pay to their workforce.”

The EAT ruled on three cases involving employees of industrial services company Hertel and the roads maintenance business Bear Scotland.  Earlier this year, an Employment Tribunal found in the case of Lock and British Gas Trading Limited that commission should be included in an employee’s holiday pay.

For more information on our Employment Law services, please contact our specialist Employment & HR team.

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