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Following a number of recent court judgments, the Advisory, Conciliation and Arbitration Service (ACAS) has published new guidance on calculating holiday pay. Among other things, the guidance highlights the following points.
Guaranteed and normal non-guaranteed overtime should be considered when calculating a worker's statutory holiday pay entitlement, but there is currently no definitive case law that suggests voluntary overtime needs to be taken into account.
Commission should be factored into statutory holiday pay calculations.
Work-related travel may need to be factored into statutory holiday pay calculations.
A worker's entitlement to holiday pay will continue to accrue during sick leave.
There are different rules for calculating holiday pay depending on the working patterns involved.
Workers must take their statutory paid annual leave allowance and can only be 'paid in lieu' for this when their employment ends.
In addition, the guidance confirms the introduction of a two-year limit for claiming backdated deductions from wages, including holiday pay. This is expected to apply to any claim presented on or after 1 July 2015.
Whilst the guidance does not say anything new, it is a useful summary for the current obligations in relation to holiday pay.