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The Insolvency Service – Changes in calculations of holiday pay

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The EAT has brought in some new rulings regarding overtime and commission payments which will affect how the Insolvency Service calculates payments for holiday pay.

Holiday pay should now take into account the following:

Commission – this applies to individuals that were entitled to commission as part of their employment contract, known as ‘contractual commission’

Voluntary overtime – this applies to individuals who have regularly worked voluntary overtime in the 12 weeks prior to the employer going insolvent.

For individuals that have previously received holiday pay from the Insolvency Service additional payments may be made if either of these two new rulings apply. This will not affect any other payments that an individual may have received such as redundancy pay or pay for loss of notice.

For more information on the changes contact the Insolvency Service.

Written by

Edward Aston
13th October 2017