Employees win holiday pay ruling - could it impact your business?

By : Administrator
Published 4th November 2014 |
Read latest comment - 5th November 2014

Amazing story on the beeb:

"Workers have won a ground breaking case at the Employment Appeal Tribunal to include overtime in holiday pay.

This means all people working voluntary overtime could claim for additional holiday pay. Currently, only basic pay counts when calculating holiday pay.

The details of the ruling, particularly on whether claims can be backdated, have yet to be released.

The ruling could be appealed to the Court of Appeal, meaning a final decision may be years away.

The ruling has widespread implications for all companies paying overtime to their staff."

BBC News - full story

So it's not going to happen overnight, but regardless this eventually could have far reaching consequences for business owners, especially if it gets backdated. 

What do people think?


Steve Richardson
Gaffer of My Local Services
My Local Services | Me on LinkedIn
Comments

And it is reasons such as this, why people end up wanting to leave the EU. We'll have another bunch of overnight companies spring up offering to make any claims on your behalf. Businesses could be forced to close if they are inundated with claims..... And just how far back can a claimant claim for? Can you imagine the cost implications and time of having to go through your entire workforces time sheets for several years? 


Thanks,
Barney

Its total rubbish !

Surely you work overtime to get extra pay for doing extra hours - if you aren't doing the job 'coz you are away how can you claim overtime 

If this Law does come in then fair enough employers have a chance to set expectations and maybe kerb o/t to protect themselves but you can't instigate a back pay policy - it will close down the smaller companies and as Barney said we will all be inundated with calls claiming we are owed      ££££'s from former employers  


Clive

Can you imagine the cost implications and time of having to go through your entire workforces time sheets for several years? ”
 

It seems, listening to a lawyer on the radio that there will be a limit of 3 months, and she clarified that it's not actual voluntary overtime, but compulsory extra hours.

The way she explained it, some firms have a requirement for staff to work extra hours, or overitme hours, eg some weekends, or evenings. If an employee is unable to refuse these hours as it is expected as part of their job role, then these hours must be taken into account as well as basic pay when calculating holiday pay.

If that's the case, then that actually sounds fair enough. If you choose to do overtime, which you can opt out of at any time, then this wouldn't be part of the holiday pay calculation.

The issue or problem as she explained is the way a lot of companies pay staff, ie a very low basic, then a sales bonus or shift allowance. In this instance, then employers could be faced with higher future salary bills.

Not sure personally if it should include bonus/shift allowances, as that is an employee choice when they took the job, rather than forced extra hours, ie anti social or weekend.

Certainly an interesting one, anyone else got any thoughts? 


Steve Richardson
Gaffer of My Local Services
My Local Services | Me on LinkedIn

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