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The Employment Overtime Ruling and its Effect on Holiday Pay

Posted on 10th November 2014

The Employment Overtime Ruling and its Effect on Holiday Pay

Employment legislation has been front page news this week because of a ruling by an EAT. The tribunal has ruled in favour of an employee who argued his holiday pay should take into account his overtime pay. Previously, an employee’s basic pay was the only consideration in their holiday calculation. After taking into account European case law, the EAT’s judgement concluded that this is no longer acceptable and that pay for required overtime must be considered in a workers holiday pay.