UK firms face huge wage bills following ruling

UK employers may have to pay billions of pounds more in wages after a London tribunal ruling that business groups say is enormously damaging to companies.

The Employment Appeals Tribunal ruled employers must consider overtime when calculating holiday pay, paving the way for higher future payments, said lawyers.

The court limited the scope of the decision, ruling that employees can’t seek pay dating back to 1998, which would have cost firms hundreds of millions of pounds in historic claims.