Holiday Pay - are you calculating it correctly?

An important holiday pay case today has confirmed that workers are entitled to include overtime pay when calculating their normal wages for holiday pay entitlement purposes. The overtime payments do not need to be guaranteed, but this entitlement is only in relation to the basic 4 weeks leave and claims for arrears of holiday pay will likely be out of time if there has been a break of more than 3 months between successive underpayments. Travel time payments which exceed expenses incurred, and therefore amount to a taxable benefit, should also be included when calculating holiday pay entitlement. Employers should revisit employment contracts and their holiday polices and procedures to assess potential liability

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