9 July 2014    |    Payroll

Holiday pay – changed basis of calculation?

The CBI has warned that a new European ruling that challenges how holiday pay is calculated could push some companies into insolvency. The European Court of Justice has redefined rules on holiday pay to include an allowance for commission, even though this is paid on actual sales made rather than on theoretical sales that an employee may have delivered were they not on annual leave. The CBI has told the government that if liabilities on holiday pay are backdated, individual firms may face bills of tens of millions of pounds.

We’ll update you with more on this, as soon as it becomes available.

In the meantime, if you have any questions about the operation of holiday pay, then please contact Sue.


The information provided is for general information purposes only.

Legislation and details may have changed since this was written.  The text may not include all matters that are relevant to your individual situation.

You should not make decisions, or refrain from making decisions, without taking further professional advice about your specific circumstances.

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