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‘Rolled-up’ pay ruling should cut tribunal toll

first_img‘Rolled-up’ pay ruling should cut tribunal tollOn 19 Aug 2003 in Personnel Today The number of firms taken to tribunal over alleged unpaid holiday leave ispredicted to fall, following recent rulings by the Employment Appeal Tribunal(EAT) on ‘rolled-up’ holiday pay. Sharon Latham, an employment specialist with law firm Clarke Willmott,believes the EAT’s decision that rolled-up holiday pay can be permitted in manycases – provided it is clearly incorporated into contracts of employment – willreduce employment tribunal claims on the subject. Rolled-up holiday pay essentially means employees are pre-payed for holidaysby including an additional allowance in their hourly rate of pay. This meansthey do not receive payment for holidays as and when they take them, but mustinstead budget their wages accordingly to cover holiday leave. This payment method has been criticised by some workers’ groups as it isseen to reduce the incentive for employees to take holidays. Latham said confusion had arisen over the legality of rolled-up pay clausesin employment contracts since the introduction of the Working Time Regulationsin 1998, which entitles staff to four weeks paid holiday. She urged employers using rolled-up holiday pay to make it very clear tostaff that holiday pay is incorporated in their hourly wages. “Make sure your staff understand that their wages are slightly higherto accommodate for holiday pay and that they realise this additional moneyshould be put aside to cover time off for holidays,” said Latham. Related posts:No related photos. Previous Article Next Article Comments are closed. last_img read more

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