Holiday Pay decision: How should employers react?

Until now, most employers, relying on the UK rules, have limited holiday pay to basic salary (excluding overtime, commission and other allowances). In November 2014 a UK court ruled that employers should include non-guaranteed overtime, (in addition to guaranteed overtime) pay, and certain taxable allowances in workers' "normal remuneration" when calculating their pay for their minimum four weeks' statutory holiday each year. Employers may now face claims for past underpayments of holiday pay and should consider strategies for dealing with this development going forward. In this webinar we discussed what this means now for the business in the UK: the nature of non-guaranteed overtime payments and any possible implications for truly voluntary overtime; the nature of allowances paid to workers which should now be included in holiday pay; the holiday entitlement which is affected by this ruling and how to calculate overtime or allowance payments; time limits for claims of past underpayments of holiday pay; the pensions implications arising from this decision;whether any appeal is likely, and possible implications; and what employers should be doing now to seek to protect themselves from past and future. If you have any questions please contact our Employment team (http://www.taylorwessing.com/services...)