Holiday Pay Ruling Could Be Costly For Business

A tribunal has ruled that holiday pay must include overtime and commission, not just basic salaries. This decision could lead to compensation for workers and impact businesses, especially small ones. The government and employers are considering options, including appeals and legislation. The ruling is seen as a justice for workers, with implications for various industries. Businesses are advised to prepare for potential payouts, though court debates may delay any immediate financial changes.

What did the employment tribunal rule regarding holiday wage rates?

• They should only include basic salaries.

• They must include overtime and commission.

• They should be based on annual performance reviews.

• They should exclude any form of commission.

What is the role of the task force mentioned by Business Secretary Vince Cable?

• To evaluate the costs and options related to the tribunal ruling.

• To provide loans to struggling businesses.

• To increase the basic salary of workers.

• To reduce the number of working hours for employees.

How is a week's holiday pay calculated for workers with no normal working hours?

• As a fixed amount set by the employer.

• Based on the last month's salary.

• According to the national minimum wage.

• As the average rate received over the preceding 12 weeks.

Which sector is expected to feel the first effects of the tribunal ruling?

• Retail and hospitality.

• Healthcare and pharmaceuticals.

• Heavy construction and engineering.

• Information technology.

What action has John Lewis taken in response to the tribunal ruling?

• Filed an appeal against the ruling.

• Increased prices to cover potential payouts.

• Set aside £40 million to reimburse workers if needed.

• Laid off employees to cut costs.