- All overtime, including non-guaranteed and certain other supplemental payments relevant to the case must be included in the calculation of holiday pay, together with basic pay, as holiday pay should reflect ‘normal pay’.
- As well as this and crucially for employers, anybody making a claim must have had an underpayment for holiday pay that has taken place within three months of lodging an employment tribunal claim.
- If a claim involves a series of underpayments, any claims for the earlier underpayments will fail if there has been a break of more than three months between such underpayments.
It is important to note the Employment Appeal Tribunal has given permission for this judgment to be appealed to the Court Of Appeal, which means that any final decision is likely to be some time away. Therefore in the meantime, employers, workers and trade unions are encouraged to discuss any concerns arising from this judgment with each other.
Finally Business Secretary Vince Cable has announced that he is setting up a taskforce to assess the possible impact of the decision. The taskforce will consist of a selection of government departments and business representative groups. The taskforce will provide a forum to discuss how the impact on business can be limited.
If you have any questions about this ruling and how it could impact on your organisation please call Real People on 0207 710 0626 or email us at email@example.com.