EAT Makes Historic Ruling on Holiday Pay

The Employment Appeal Tribunal, last Tuesday, ruled that employers must include overtime when calculating holiday pay. The decision was made in cases brought by the union Unite, against the engineering company Amec and industrial services firm Hertel. Unions celebrated the ruling, which means around 5 million workers could be entitled to back pay.
However, not everyone was happy with the news: companies fear that this could lead to considerable payouts that could bankrupt some small businesses. The Federation for Small Businesses called on the Government to bring in emergency legislation to prevent backdated claims. The Government had already intervened in the case at the Tribunal and made its view against the inclusion of overtime clear. The complex cases revolved around the EU’s working time directive and past rulings of the Court of Justice of the European Union.

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