Holiday pay news

holiday pay - deck chairWhat do we already know?

We updated you in our Newsflash Big news – holiday pay and overtime and our November Newsletter Case update (1) – holiday pay and news on the EAT’s recent and very well publicised decision that holiday pay should be calculated to include non-guaranteed overtime. This decision followed the ECJ decision of Lock v British Gas which opened up many questions about the way the Working Time Regulations 1998 approach the calculation of holiday pay.

A number of Tribunal cases have been brought seeking to challenge their employers’ calculation of holiday pay and seeking to include elements such as commission, overtime pay, attendance bonuses and travel allowances. This has led to questions as to how such claims should be dealt with. Our current view is that should you receive a claim, Tribunals are likely to stay them pending any appeal to the Court of Appeal (and onwards).

What’s new?

Welcome guidance, given the questions highlighted above, is expected from the English and Scottish Presidents of the Employment Tribunals in the coming weeks. (Reported by the Central London Employment Tribunal User Group).

If you do receive a claim then and you would like our help in responding to this please do not hesitate to contact Luke Menzies at or 0845 113 0150 or any other member of the team.