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Employment: the big story of the month undoubtedly is the holiday pay saga. The news broke on the 4th November that the Employment Appeals Tribunal (EAT) had answered the question of what constitutes normal remuneration for holiday pay purposes.
The key issue being whether holiday pay should include overtime that an employee normally earns or whether the employee is only entitled to basic pay during holiday periods. The EAT held that employers must pay normal remuneration for holidays and that includes the regular overtime regardless of whether it is guaranteed or not, but this only applies to the first 4 weeks of holiday.
With regard to claims for holidays already taken, aside from very recent holidays we believe that’s unlikely although the door is not completely shut. Doubtless there will be a test case.
Naturally with any such significant shift in law the first task will be to consider the financial impact. Once that’s done we recommend that employers review their current contracts and policies and consider any knock-on effects. Perhaps the most obvious knock-on effect will be the impact on pensions.
Finally and just to flag, we may not have heard the end of this story as the door has been left open for an appeal. Read more details: Sun sets on holiday pay dispute.
Website blocking orders: the Richemont Group has obtained a website blocking order against five internet Service Providers. Richemont who is the
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