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Insolvency Service changes how it calculates holiday pay

As a result of recent decisions by the Employment Appeal Tribunal, the Insolvency Service has announced that it is making changes to how it calculates holiday pay.

The Insolvency Service steps in to make certain payments to individuals which an employer cannot; generally where the employer is insolvent.

The changes to the calculations affect holiday pay payments to those who received commission as part of their employment or who regularly worked voluntary overtime in the 12 weeks before their employer went into insolvency.

This is the clearest indication yet for any employers sitting on the fence about whether they need to make any changes to their own calculations of holiday pay. If you are unsure or need help and assistance with what should be included, do not hesitate to contact Julie Temple – she will be happy to discuss how Quantrills can help.

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