Newsflash: Holiday pay update

You will recall in last week’s Newsflash we alerted you to the very recent Lock case, which is likely to have a significant impact on the calculation of holiday pay, since it now needs to include commission.

The next development we predict is that holiday pay may also have to include an element of bonus payments too.

We have had a number of queries about this case from clients keen to understand the potential impact for their businesses, so we have prepared a headline guidance note which sets out a summary of the Lock decision, our comments on it and, importantly, some recommended next steps. You can find it here.

Since this is a very significant development, with the potential to expand further into bonuses, we are in the process of organising a briefing seminar on this decision and its impact, to:

• explore the potential impact for your organisation in more detail;
• look at the practical steps you can take to assess cost;
• consider contingency planning strategies; and
• communicate complex messages on this issue to colleagues across your organisation.

More details on this event to follow shortly.