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How do I fix the problems caused by the holiday pay cases?

5 June 2014

In 2013, John Lewis admitted incorrectly calculating holiday pay by failing to take into account additional payments received by staff working on Sundays and Bank Holidays. It paid £40 million to correct its error.

It is likely that many other employers will now be forced to follow suit in relation to commission "lost" during holiday as a result of the European Court of Justice (ECJ) decision of Lock v British Gas. 

This is an extremely important case for any employers who operate a commission scheme, as claims could be made by workers in respect of holiday pay going back over several years. 

Employers who consider the issue and consequences now are likely to have more options than those who wait for claims to be made.

Read more in our briefing on how employers can correct problems caused by the holiday pay cases (PDF).