The Holiday Pay Saga

Over the past year, the issue of holiday pay and how it should be calculated has become a hot topic for employers with a number of key cases being decided. There is still a great deal of uncertainty in this area but the key development has been the move towards "normal remuneration", which must be paid to employees taking holiday, having to include all payments intrinsically linked to the performance of contractual tasks. What this has meant in practice is that holiday pay should now include, in most circumstances, regular overtime that employees are required to work and commission, together with a number of payments that will be familiar to employers in the transport and logistics sector, such as shift and local allowances and call-out and standby payments.