Holiday pay used to be a straight forward concept. The employer would pay the employee basic pay whilst on holiday. As a result of decisions in both National Courts and in the European Courts, the concept of holiday pay and what constitutes holiday pay has become somewhat complicated.
The National Courts and European Courts have been busy in terms of interpreting EU and national legislation, and have now made legal determinations that holiday pay may include regular bonus payments, contractual overtime and other contractual payments. It is not as simple as paying a flat rate for holiday pay. As a result this has become one of the “hottest” topics in Employment law. Davies and Partners specialist employment lawyers can give you up to date advice on your obligations in respect of holiday pay for your employees to prevent claims being made for breaches of contract and unlawful deductions of wages.