June 2 2015.

Commenting on the changes to holiday pay claims, which took effect from the 1st of July, Dr Adam Marshall, Executive Director of Policy and External Affairs at the British Chambers of Commerce said:  “The disappointing ruling of the Employment Appeal Tribunal last year, which said that firms needed to include overtime in holiday pay calculations, opened the door to back-dated claims that could have run into the millions.

“We pushed hard for a two-year backstop for holiday pay claims, which limits the back-dated claims that companies may have to pay.

“However, there is still significant uncertainty for businesses when it comes to devising holiday pay policies. Firms want further clarity from government on the new rules, and reassurance that the new requirements will be implemented in a fair and proportionate manner.

“More broadly, we are concerned by the growing number of rulings – both here in the UK and in the European courts – that are steadily expanding the definition of holiday pay. These changes create huge risks for businesses, and could deter some from expanding and creating jobs.”