BREAKING NEWS: the Employment Appeal Tribunal rule that overtime should be included in holiday pay

In a ground-breaking case, the Employment Appeal Tribunal ruled that holiday pay should include overtime, rejecting the companies' appeals. 

The Tribunal ruled that this applies only to the basic 4 weeks' leave granted under the Working Time Directive, not the additional 1.6 weeks under regulation 13A of the Working Time Regulations.

Currently, only basic pay is included when calculating holiday pay.

Employees will be able to make backdated claims for arrears of holiday pay, but only for a limited period.

However, the Tribunal gave permission for the employers to appeal to the Court of Appeal.  We are yet to see whether such an appeal will be made but bearing in mind the impact of the ruling on businesses, a further appeal may follow.

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For advice on this or any other employment issue please contact James Johnson on 01332 225271.