A decision reached on 4 November 2014 by the Employment Appeal Tribunal is likely to have major implications for employers calculating holiday pay. The EAT found that overtime which an employee was required to work should be included in the calculation of holiday pay.

The UK government has already set up a task force to investigate and limit the effect of the decision on businesses. The full ramifications of the ruling are still under consideration and will be explored in detail in Faegre Baker Daniels' employment update at the end of the month.