Are You Calculating Holiday Pay Correctly?

Overview

Under the working time regulations, holiday pay is usually calculated in regard to an employees basic pay. Last year the Supreme Court in Williams and others v British Airways (2011) signalled the way for a significant re-think of the way statutory holiday pay should be calculated. It was established that holiday pay should include all elements of remuneration which are ‘intrinsic’ to the performance of the job.

When the issue of miscalculated holiday pay came to light in 2013, John Lewis took the pro-active approach to review their holiday pay process. On evaluation it became apparent that they had been in error and have since reportedly paid out over £40 million to their