Employers must account for overtime in holiday pay calculations.
Employers must take account of overtime when calculating holiday allowances for staff, according to a ruling by the Supreme Court. The ruling came in a case brought by the Police Service of Northern Ireland, which must now pay at least ￡30m in back pay to officers and civilian employees. The dispute arose after a change in rules meant that overtime and additional payments should be factored into holiday pay rates. Employment specialists warn that employers will no longer be able to use technical arguments to limit their liability for underpaid holiday pay claims.?
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