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MILsHoliday pay news – Big employers move to increase holiday pay

Members will be aware of recent case law developments in employment law suggesting that employers will need to calculate holiday pay to include regular overtime payments and regular commission payments for employees, where previously they paid only basic pay.

It was reported last week that John Lewis and Waitrose staff are to receive a £22 m holiday pay windfall as the John Lewis partnership has elected to follow the recent Court rulings on the inclusion of overtime and commission pay in the calculation of holiday pay.

Members who continue to pay only basic holiday pay and exclude regular commission or overtime payments may be faced with holiday pay claims. Before Christmas the Government announced that, on or after 1st July 2015, a 2 year cap to back pay claims would apply. Before that date, however, no statutory cap is applied. ACAS are reporting an influx of holiday pay claims being lodged now by solicitors acting for the Unions, before the cap applies.

Members who want more advice should contact the RMIF legal helpline.

Andrew Macmillan, Solicitor, Motor Industry Legal Services

Posted by Sue Robinson on 20/02/2015