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Liability Risk and Insurance

No rolling up of holiday pay

An employee brought a test case against his employer over his holiday pay, which he won at an employment tribunal. The Employment Appeal Tribunal upheld the original decision, and the Court of Session refused an appeal by the employer. It ruled that an employer was not allowed to ‘roll up’ holiday pay, and must pay the employee for holiday leave at the time it was taken. It added that if such rolling up of holiday pay was included in employment contracts, then any such payments would not discharge the employer’s liability in respect of holiday pay.

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