Do you have a holiday pay claim?

The Employment Appeals Tribunal ruled on 4 November 2014 that regular overtime should be included in calculations of holiday pay, rather than just using an employee's basic rate of pay.

Under the carefully worded-ruling, employees who are contractually required to do overtime should have been paid more holiday pay, not just paid at their basic rates. Technically, those who do overtime voluntarily would be excluded, although it is arguable that if the "voluntary" overtime is done regularly and is expected of an employee, they too could be covered by the new ruling. It also seems likely that bonuses could fall within the ruling.

It is important to remember that the extra pay to which employees could be entitled is limited to the extra that could have been paid for a period of four weeks. It is also likely that the wording of the judgment means claims can only go back three months, rather than years. 

It seems likely that the ruling will be appealed, and so claims lodged now on the back of the ruling could be stayed. 

If you would like any further information about how to claim, or about what you should do if employees are claiming against you, contact us for a free, no obligation discussion