An employment tribunal has found that a worker's holiday pay should be calculated by reference only to his or her basic pay, excluding overtime pay, discretionary bonuses and standby allowances, taking a more straightforward approach than the tribunal in the controversial decision in Neal v Freightliner Ltd.
The Advocate General has taken the view that, where the remuneration received by a worker comprises both basic pay and commission calculated by reference to the sales that the worker gets from his or her own work, such commission should be included in the calculation of holiday pay.
David Malamatenios is a partner, and Colin Makin, Krishna Santra, Sandra Martins and Melissa Powys-Rodrigues are solicitors at Colman Coyle Solicitors. They round up the latest rulings.
Practical guidance on implementing and managing a discretionary bonus scheme as part of the organisation's reward strategy, including setting key performance conditions.
The materials and information included in the XpertHR service are provided for reference purposes only. They are not intended either as a substitute for professional advice or judgment or to provide legal or other advice with respect to particular circumstances. Use of the service is subject to our terms and conditions.