It is now confirmed that the long awaited Employment Appeal Tribunal (EAT) judgment on holiday pay will be handed down on Tuesday 4 November 2014.
We predict that the decision in the Bear v Scotland, Hertel and Amec cases will go against employers and that the EAT will decide that many types of overtime pay should be included in holiday pay calculations. We also anticipate that the decision will permit back-pay claims, but we do not know how far back these will go. We have called upon Government to examine ways of reducing the length of the back pay liability period.
Representing your interests to Government
We have a busy week ahead. A newly established Taskforce led by BIS, which EEF called for, will begin work to discuss what action Government is now going to take across the piece. In addition, on Monday, we are meeting the Treasury and HMRC to seek concessions in relation to PAYE and NI on back pay as a result of the decision. On Wednesday we have called together all the main business organisations for a meeting to discuss the decision, its impact, and what action we need from Government.
Further EEF support on holiday pay
We will send out another HR briefing on Tuesday, once we have digested the judgment, explaining the implications of the case.
We will also be running a national series of breakfast seminars, starting in early November, which will explain the key aspects of the judgment and how it may affect you, how to achieve compliance in practice and strategies for responding to your back pay exposure. At the breakfast seminars, we will also be able to update you on the very latest Government proposals. These seminars will be available to book on our Business Support events page by the end of Tuesday 4 November.