Chamber Head of Information and Representation, Chris Hobson
Millions of workers could now have their holiday pay recalculated to take into account overtime. Businesses are facing a huge bill as a tribunal ruled today that overtime should be taken into account when holiday pay is calculated.

In a landmark case, the Employment Appeal Tribunal ruled that it is wrong for employers to only take into account basic pay when calculating how much an employee should be paid while they are on holiday.

Chris Hobson, the Chamber's Head of Information and Representation, said: “Today’s tribunal rulings are highly damaging and could have huge financial and administrative implications for many businesses across the East Midlands, which could lead to business failures and job losses.

“The economy is starting to show signs of real growth following its recovery from recession and many companies are working to reverse pay cuts and invest in their employees. Having to face huge and unforeseen pay claims could severely hamper their growth prospects.

“These rulings should be challenged to limit any retrospective liability that firms may face, so it’s good to see that the Government has already established a taskforce to look at the potential implications and limit their impact on business.”