Holiday pay claims - am I entitled?
The Employment Appeal Tribunal (EAT) has recently made an important ruling which could allow some people working overtime to claim for additional holiday pay.
Employees are entitled to four weeks’ holiday pay a year but there has been no formal details of how the level of holiday pay should be calculated.
Until now, the UK Government have interpreted the EU Working Time Directive as saying that the level of holiday pay should be calculated at an employee’s basic rate of pay. This has meant additional payments for regular overtime work have not generally been included by employers when calculating holiday pay.
Tribunal ruled that overtime should be included in holiday pay
In a landmark case, the Tribunal ruled that overtime should be included in holiday pay. This could mean workers across Scotland receive holiday pay which properly reflects the hours they work throughout the year.
Our Employment Law Department welcomed the ruling, saying it represented another important step forward towards pay fairness and equality. They said:
“Everyone should be fully and fairly paid for the work they do. This important ruling will help thousands, if not hundreds of thousands, of people across Scotland receive holiday pay that accurately reflects the hard work and overtime they put in during the year.
“Good employers value their staff and some employers will already take overtime into account when giving employees holiday pay. Unfortunately, most don’t and this ruling could help ensure individuals working for less scrupulous companies will get their full holiday pay entitlement.“
Further information about holiday pay claims
The full Employment Appeal Tribunal ruling can be read online at http://www.judiciary.gov.uk/wp-content/uploads/2014/11/bear-scotland.pdf