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Overtime and Holiday Pay

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The UK Employment Appeal Tribunal (EAT) has recently ruled that employees’ holiday pay should reflect non-guaranteed overtime. For employers who regularly ask staff to work extra hours, the bill in future could be significant. But the critical words are “in future” because companies will have time to adapt to the ruling. Most commentators agree that the EAT seems to have limited the scope for substantial retrospective claims – a potential liability which had been a concern for employers.

A government led review is expected to determine how this ruling will actually impact on businesses. Employers may need to consider adjusting their working practices regarding overtime arrangements and holiday pay. We can help you to devise and implement suitable policies and procedures to reduce the risk of unexpected large claims in the  future.

Andrew Macmillan,  Solicitor

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