Holiday pay – the law

  22nd April 2015      
 Company News, Employment Law, Human Resources

By Suzi Dixon, Community Editor

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Did you know that if your staff regularly sign up for extra overtime, you need to budget for that in their holiday pay? Our latest employment law seminar with Frettens Solicitors included a short section on this subject. And most of the laws that apply are based on precedent, or case law — that is, decisions that have been made in the past.

In the case of Bear Scotland v Fulton and others it was decided that holiday pay needs to include overtime if the employee takes it regularly. What’s more, in the case of Lock v British Gas, it was decided that commission needs to be considered to — as, for many in sales, OTE are the reason you sign up for the job. So the basic salary is irrelevant.

In the case of Williams v BA, it was also decided that allowances need to be considered as part of a holiday pay package. After all, flight staff get food and drink allowances as part of their salary — so, that affects their lifestyle. Why should they have to behave differently when they have time off?

The final legal case that affects holiday pay is the unlikely event of an employee dying during a holiday and their family asking for the wages to be covered for that time-off. Bollacke v Klass & Kock was a lawsuit in Germany but is used as the precedent, currently — the court decided that the employees wages could and should be covered for the complete holiday period.

Our free HR seminars can help keep your staff up to date with all the latest legal cases. Sign up here.

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