Holiday pay sounds straightforward. And it should be straightforward – a worker takes a day’s holiday and is paid a fixed amount for that day. However, recent cases and media attention on multi-million pound holiday pay pay-outs in the retail sector, have thrown the UK rules on calculating holiday into turmoil, raising the following issues:
- Are employers been paying holiday correctly?
- If not, are they liable for holiday back-pay?
- Do they need to change how they pay holiday going forward?
The potential costs for employers, financial and otherwise, could be significant.
Osborne Clarke’s employment team is following closely the developing law on this issue and advising clients on the impact for their businesses. For advice on this issue, please contact your usual OC contact or one of our experts below.