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Posted 28 November 2014
by Martin Laver

Holiday pay and overtime – an update

Since writing my last blog, we have heard that the union advising some of the appellants in those cases has decided not to appeal the decision to the Court of Appeal.

Couple that with the remaining cases being sent back to the Employment Tribunal and we now know that the legal position on historic back pay claims is likely to be fixed. The net result, then, is that employees are only likely to be able to make historic claims going back in to the previous holiday year (save for some very unlikely scenarios). There was some concern that a successful appeal might open the floodgates to substantial and expensive retrospective claims.

However, the issue about calculation of holiday pay will rumble on for a little longer. We are expecting some more cases highlighting the principles around commission payments and whether those should be taken into account. Additionally, considering the judges’ comments in the recent cases, there are likely to be more claims around bonuses and that position is presently unclear.

Great for the academic lawyers. A minefield for employers.

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About the author

Martin Laver

Partner

Partner in the commercial litigation team specialising in disputed trusts and Wills