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.