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EAT confirms holiday pay must include overtime payments

Source: CIPD

A landmark judgment from the Employment Appeal Tribunal (EAT) to include overtime in holiday pay with potentially costly implications for UK businesses has been announced.

The decision – which could affect up to 5 million workers according to government figures – confirms that elements of remuneration such as overtime and commission must be included in the calculation of holiday pay.

The judgment that was handed down today (Tuesday 4 November) concerned the calculation of holiday pay in three cases: Bear Scotland v Fulton and Baxter, Hertel (UK) Ltd v Wood and others and Amec Group Ltd v Law and others.

It has been closely monitored by businesses, trade unions and the government with all involved anticipating claims of hundreds of millions of pounds in back pay for the past 16 years.