Holiday pay ruling comes into force next week

From 1st July employers will need to take overtime and commission into account when calculating holiday pay, so that it is calculated on an employee’s actual earnings, not their basic salary. Where someone’s hours and earnings vary over time, their holiday pay should be based on an average of their actual earnings calculated over a 12 week period.

Employees will also be able to back date claims for holiday pay for up to two years.

For information on employment law and your employees please contact Vaishali Thakerar at Lawson-West Commercial on 0116 212 1000.

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