Following a landmark ruling by the Employment Appeal Tribunal (EAT) last week, employers will have to review their overtime provision after the ruling that regular non-guaranteed overtime should be included in holiday pay.
According to government estimates, around one-sixth of the 30.8 million people in work receive some form of overtime. This means that around five million workers could be entitled to more holiday pay.
This ruling changes the law in terms of how employers calculate holiday pay; currently, only a worker’s basic pay counts towards this calculation. The EAT however, has limited the potential for workers to succeed with claims for historical non-payment of holiday pay, alleviating the fears that this law change would results in billions of pounds of backdated pay.
Employers have seen several changes in employment law recently that have been implemented to try and strike the right work-life balance, with the entitlement to shared parental leave as another example.
Employees are currently entitled to 26 weeks ordinary maternity leave and 26 weeks additional maternity leave; however with the right to shared parental leave, due to come into force on 1st December 2014, this could mean that the mother or adopter shares some of the leave with their partner, perhaps returning to work for part of the time and then resuming leave at a later date. It will apply to the parents of babies due (or children placed for adoption) on or after the 5th April 2015.
An employee could potentially make a request for shared parental leave from 1st December 2014.
It is not necessary for both the mother and the partner/father to be employees for one of them to qualify for shared parental leave and it is important that all companies should have a clear shared parental leave policy in place to help them manage any requests as and when they are made.