The decision has been made in reference to the cases Wood vs Hertel UK and Fulton vs Bear Scotland. The ruling of the employment appeal tribunal upholds that of the original court.
Linklaters employment and benefits partner Jean Lovett believes the decision will have a "significant" financial impact on employers as they face large backdated claims from staff.
"The number of potential claimants across various sectors and industries is vast," she said. “The law on holiday pay has been in a state of flux for some time. However, we envisage that this decision will not be the last word on this issue. As significant sums are involved, we expect the decision to be appealed.”
