Millions of workers are in line for extra holiday pay after a landmark tribunal ruled that regular overtime shifts should be taken into account when calculating people’s ‘normal’ wage.
The ruling paves the way for a flood of payouts to workers who have been short-changed by their bosses. However, businesses have warned it could see wages cut and jobs lost.
Workers will now be able to make backdated claims for lost holiday pay, but only if it is less than three months since their last break.
The Employment Appeal Tribunal in London ruled that Britain had been misinterpreting European Union law for the past 16 years by insisting that holiday pay should not have to take into account regular overtime.