A ground-breaking Employment Appeal Tribunal case could mean workers’ holiday pay will include overtime.
The ruling means some people working overtime could claim for additional holiday pay. The current set up means only basic pay counts when holiday pay is calculated.
Workers will also be able to make backdated claims for a limited period.
The ruling may be referred to the Court of Appeal, meaning a final decision may be years away.
Andy Willox, the Federation of Small Businesses’ (FSB) Scottish policy convenor said:
“Today’s ruling leaves questions unanswered for smalls firms across the length and breadth of Scotland. It has the potential to hurt thousands of Scottish businesses, presenting a real risk of closures and job losses if they face large retrospective claims.
“Clearly it would be desperately unjust to expect Scottish businesses to pay retrospective compensation for how they calculated holiday pay when they were fully compliant with the law as it was understood at the time.
“The FSB has been appointed to a UK Government taskforce to examine this issue and will be fighting hard for small businesses to be insulated from the uncertainty and legal risks this ruling brings.”
