Overtime should count in holiday pay

Businesses may 'take action' against government for failure to implement EU legislation

05 Nov 2014

It is wrong for employers to only take into account basic pay when calculating how much employees should be paid while on holiday, the Employment Appeal Tribunal (EAT) has ruled.

The EAT added that workers could make backdated claims, but only if it is less than three months since their last holiday. This could leave businesses facing a multibillion-pound bill payable to their workforces.

The tribunal ruled on appeals brought by three companies, Bear Scotland, Hertel and Amec, whose employees had already been successful in their original claims.

Following the ruling, the business secretary Vince Cable declared: "Government will review the judgment in detail as a matter of urgency. To properly understand the f...

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