Holiday Pay – Overtime decision

The Employment Appeal Tribunal (EAT) has this morning issued it’s decision in the case of AMEC Group Ltd –v- Law and others which considered whether the calculation for holiday pay should be based on basic pay only or whether non guaranteed overtime should be included in the calculation.

The bad news for employers is that the EAT has held that workers are entitled to be paid normal remuneration i.e. their typical average pay and therefore holiday pay should include any overtime payment that is received. In summary employees who work overtime will be entitled to claim additional holiday pay.

The good news for employers is that the EAT has held that claims for arrears in pay will be out of time if there is a break in the payments of more than three months which will limit the amount of back pay employees can recover.

If you require any further information, please contact Sejal Raja on sejal.raja@rlb-law.com


Disclaimer

This briefing is for guidance purposes only. RadcliffesLeBrasseur accepts no responsibility or liability whatsoever for any action taken or not taken in relation to this note and recommends that appropriate legal advice be taken having regard to a client's own particular circumstances.