Holiday pay update and Government reaction

Hot on the heels of yesterday's announcement that holiday pay should include overtime payments, further details have emerged of the Employment Appeal Tribunal's ruling.

The key points are:

  • Workers are entitled to be paid a sum of money to reflect normal non-guaranteed overtime as part of their annual leave payments (holiday pay).
  • Claims for holiday pay arrears will not be allowed if there has been a break of more than three months between successive underpayments.
  • The ruling only applies to the four weeks' leave granted under the Working Time Directive.
  • Payments for travel time which exceed expenses incurred should also be reflected in the holiday pay calculations.

As mentioned yesterday the decision is subject to a possible appeal, and we will let you know if and when this is the case.

Government reaction

Soon after the announcement, Business Secretary Vince Cable announced that he would establish a taskforce to assess the possible impact of the ruling.


Roythornes Employment Law contact:

Phil Cookson
01775 842575