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Are employees and workers entitled to overtime pay when on holiday?

An important judgment was issued yesterday by the Employment Appeal Tribunal (EAT) which could have significant financial consequences for any business that offers paid overtime or makes other regular payments to its workforce.

Previously, the practice operated by most employers has been not to include overtime pay, commission, travel allowances and other “non-basic salary” payments when calculating the pay that workers receive when on holiday, even if they receive those payments regularly when they are at work. However, after a number of challenges were made to this approach by employees and workers (with trade union support), that position has now been confirmed as unlawful. More…