Thousands up for backpay bonanza; The People's Champion.
Byline: with Dean Dunham
WORKERS could be in line for back-dated payouts after a landmark ruling that overtime must be taken into account in holiday pay.
Bosses criticised last week's Employment Appeal Tribunal decision, fearing lots of claims by private or public sector employees who have worked extra hours.
Here is the scenario the tribunal had to consider.
The employee earns a basic salary of, say, PS500 per week.
On top of normal working hours the employee regularly does overtime meaning the weekly salary with overtime is more like PS800 per week.
When it comes to holiday money, the employer pays the basic PS500 per week while the employee is away.
The question is, should the employee be paid PS800, which is what they are used to receiving? I have no doubt that if the above applies to you, your employer ordinarily pays you your "basic" salary for your holiday pay.
Well this may be about to change as a result of last week's case because the tribunal ruled that when employers calculate holiday pay they should take into account overtime regularly worked.
But will you be able to claim where you have been short changed for past holiday pay? The law on this (The Working Time Regulations 1988) says that you can bring backdated payment claims but that you must do so within three months from the date that you should have been paid.
So, if you have taken time off in the last three months and were paid your normal salary for the time off, you can make a claim if you regularly worked overtime.
If you feel you have a claim but it is in relation to holiday pay that you received more than three months ago, you may still be able make a claim. The Government is considering whether employees should be able to claim for shortfalls in holiday pay dating back to 1988.
I will keep you informed as to how this progresses.
If you think you may have a claim, speak to your employer first.
If they do not help you can contact the Acas helpline on 0300 123 1100 for free and confidential help and advice.