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| Overtime should count in holiday pay | |
| (35 minutes later) | |
| Workers have won a groundbreaking 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. | 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 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. | The ruling has widespread implications for all companies paying overtime to their staff. |
| The government estimates that one-sixth of the 30.8 million people in work get paid overtime. This means around five million workers could be entitled to more holiday pay. | The government estimates that one-sixth of the 30.8 million people in work get paid overtime. This means around five million workers could be entitled to more holiday pay. |
| The coalition and business groups had argued strongly that overtime should not be included in holiday pay calculations. | |
| If claims can be backdated, businesses stand to lose billions of pounds, some estimates suggest. | |
| "Up until now some workers who are required to do overtime have been penalised for taking the time off they are entitled to," said Howard Beckett of Unite. | |
| "This ruling not only secures justice for our members who were short changed, but means employers have got to get their house in order." | |
| Given the financial implications for companies, lawyers suggested an appeal was likely. | |
| "The potential financial implications for many employers will be significant," said Jean Lovett, Employment and Incentives partner Linklaters. | |
| "We envisage that the tribunal's decision will not be the last word on this issue. As significant sums are involved, we expect the decision to be appealed." | |
| "Due to the costs involved many employers may now look to reduce the availability of overtime, where feasible." |