In this article, we look at the caselaw in this area as it currently stands, but of course this could be challenged or the government could decide to make amendments to the law on holiday pay, now that the UK has left the EU. There have been a number of significant court cases over the years, disputing that employees haven’t been paid enough for holiday pay, and in particular considering whether holiday pay should take account of payments such as regular overtime and commission. Pay and holiday entitlement are amongst the most important things an employer should get right. Of course, it should be remembered that both employees and workers are entitled to minimum holiday and holiday pay, but in this article we’ve just referred to employees. You might be paying too little or too much, so make sure you have the facts. If you haven’t changed or looked at your holiday pay policy for a few years, then now would be the time to review it. How could this happen? Well, as an employer, the way you should be calculating holiday pay has changed over the years. It makes for an unhappy employee, and a worried employer. However, that bubble can soon burst when employees take a look at their online banking app or next payslip and realise they’ve been underpaid for the time they had off.
We all know what it’s like when your employees head off on holiday their work worries disappear and they come back refreshed and happy! MaHoliday pay claims: what you need to know
