ECJ ruling on holiday pay could kill business

Posted By: James

Tuesday 8th July 2014

The CBI has warned that a new European ruling that challenges how holiday pay is calculated could push some companies into insolvency. The ECJ has redefined rules on holiday pay to include an allowance for commission, even though this is paid on actual sales made rather than on theoretical sales that an employee may have delivered were they not on annual leave. The lobby group has told the government that if liabilities on holiday pay are backdated, individual firms may face bills of tens of millions of pounds. Katja Hall, deputy director-general of the CBI, said: “Moving the legal goalposts is unacceptable. Although most businesses believe we are better off in a reformed EU, there is a real danger of expansive decisions being made by the European Court of Justice on the UK labour market. As part of an EU reform programme, this has to be addressed and it’s time to put a stop to back-door EU employment law being made.”

 

[Would you like to leave a comment?]