The holiday pay rule – is it time to start panicking?


Here’s a sobering conundrum for all employers who pay either overtime, or commissions to employees. This article by Claire Churchard, in CIPD’s People Management today:

CIPD Limits on backdated claims, but calculation of pay must change.

An employee’s week in the Algarve could now cost their employer more in holiday pay if that staff member works non-guaranteed overtime.

The change to how paid time off is calculated could affect five million employees, though the nightmare scenario of unlimited backdated claims appears to have been avoided. What has happened and what does HR need to know?

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