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Tuesday, July 28th, 2015

Legal update – Holiday Pay

Holiday pay

This update on holiday pay has been sent by voluntary sector legal expert Sandy Adirondack.

In the UK, workers have 5.6 weeks (28 days) of statutory annual leave, of which four weeks (20 days) are required by the EU working time directive. Recent rulings by the European court of justice (ECJ) have said that workers must not be discouraged from taking statutory leave; it might be a deterrent if their holiday pay is less than their normal pay; therefore, holiday pay must be comparable to their normal remuneration, and must generally include overtime pay, allowances, commission etc if these are sufficiently regular to form part of normal remuneration.

The ECJ decisions and related decisions in the UK tribunals and courts have led to a situation which is unclear, confusing, complex, and likely to change as decisions continue to be made and appealed in the UK tribunals and courts. In the meantime, many employers will need to look at how they have been calculating holiday pay, and may need to change how they do it.

Sandy Adirondack’s update on this includes a summary of the key points, more detailed explanations of the relevant legislation and cases, and a to-do list of implications and actions.

All of this information can be found at

Sandy Adirondack’s legal updates are published at