Are You Calculating Holiday Pay Correctly?

Posted in : Immigration and Employment Updates on 30 September 2014
Michael Black
Cleaver Fulton Rankin
Issues covered:


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

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This article is correct at 06/08/2015

The information in this article is provided as part of Legal-Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article.

Michael Black
Cleaver Fulton Rankin

The main content of this article was provided by Michael Black. Contact telephone number is 028 9024 3141 or email

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