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Holiday Pay

Holiday pay

Holiday pay has hit the headlines following the recent EAT decision about overtime. Coupled with the CJEU judgment that commission should also be included in holiday pay, employers can no longer afford to sit back. The stakes are high; but Eversheds Sutherland's experts are leading the way, providing an innovative three step process to help you:



  • Review contracts, collective agreements and bonus/commission scheme documentation; 
  • Review risk with reference to categories of variable pay and employee groups; 
  • Review any liabilities associated with your pension arrangements as a result of incorrect employer pension contributions; 
  • Review the status of any historical settlements; and 
  • Produce a Board level executive summary and full report.


  • Existing employee annual cost of additional holiday pay; 
  • Existing employee liability in respect of back-pay; 
  • Former employees; and 
  • TUPE transfers.


  • Resolution strategies and options; 
  • Options for breaking the chain of any deductions; 
  • The likely long-stop date for claims for back-pay and retrospective effect; and 
  • An accounting provision, where appropriate, in respect of which liability and over which period such a provision should be made.

Eversheds Sutherland can add real value to your strategic planning. We have already undertaken detailed holiday pay audits for employers in various sectors including transport, retail and finance. We have also worked alongside BIS to facilitate consultation between the Government and key stakeholder employers.

Undertaking an accurate assessment of your exposure is vital to ensure that the Board is aware of the risks and that you consider the pros and cons of alternative settlement solutions. Any advice provided by Eversheds Sutherland would of course also be protected by legal privilege and our audits are therefore not disclosable documents in any subsequent litigation.



Contact us

Diane Gilhooley, Partner

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