That holiday pay ruling: The good and bad news for business owners

That holiday pay ruling: The good news and the bad news for business owners

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A key employment law ruling has stated businesses must factor in overtime when calculating holiday pay. Alexandra Mizzi looks at the detail...

The Employment Appeal Tribunal this week confirmed that UK businesses should factor in overtime when calculating holiday pay, as well as basic salary. However, although the case will have significant financial and practical implications for UK businesses, one aspect will come as a major relief as the EAT decided that workers will not be able to backdate their claims back to 1998 as had been feared. The crucial issue in the cases was whether UK law, which currently states that workers with normal working hours can be paid basic salary only during annual leave, should be interpreted dif...

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