- Employee law
- December 16, 2014
How Has The Calculation Of Holiday Pay Changed?
By Lawbite Team


- Include non-guaranteed overtime in the calculation of holiday pay, at least for the first 4 weeks of an employee’s holiday entitlement, and amend holiday policies to reflect this.
- Paying different rates of holiday pay may be difficult to manage administratively, so consider whether to include non-guaranteed overtime in all holiday pay or change overtime policies to make it voluntary, subject to any contractual issues - although this may be a short term solution as voluntary overtime may be the subject of the next legal challenge in relation to holiday pay.
- Review other regular payments to employees, including commission, as some or all of these may have to be included in holiday pay by 2015. Consider changing payment arrangements and make provision to meet additional holiday pay obligations.
- Assess liability and risk for past holiday underpayments. Would any employees be able to bring a claim in the employment tribunal? Are employees likely to bring claims? Consider how to deal with any claims.
In closing
Nothing in this article constitutes legal advice on which you should rely. The article is provided for general information purposes only. Professional legal advice should always be sought before taking any action relating to or relying on the content of this article. Our Platform Terms of Use apply to this article.
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