Insolvency Service holiday pay to include contractual-based commission
27 September 2017
The Insolvency Service pays holiday pay (along with notice pay and redundancy pay, all subject to various caps) to employees whose employers are insolvent.
With thanks to Daniel Barnett’s employment law bulletin for providing this update.
The Insolvency Service has announced that it will be changing the way it calculates holiday pay to include contractual-based commission. Its decision has retrospective effect, ie will benefit everyone who has ever applied for and received holiday pay from it. If someone applied for holiday pay from the Insolvency Service on or after 1 August 2011 (whether or not they've been paid it), the Insolvency Service will contact them directly to seek evidence of what extra payments they might be entitled to.
If someone applied for holiday pay from the Insolvency Service earlier than August 2011, then they need to contact the Insolvency Service.
But these extra payments will only be made if the employee indicated at the time on their form that they were entitled to contractual commission. If they did not, they cannot raise a claim now.
See the Insolvency Service website for more details.