News story

Employment Appeal Tribunal: Changes to how the Insolvency Service calculates holiday pay payments

The Employment Appeal Tribunal has made decisions about overtime and contractual commission which affect how the Insolvency Service’s Redundancy Payments Service (RPS) calculates holiday pay payments.

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The Employment Appeal Tribunal has decided that holiday pay should take into account:

  • commission if individuals were entitled to commission as part of their employment contract (called ‘contractual commission’)
  • voluntary overtime if individuals regularly worked voluntary overtime in the 12 weeks prior to their employer going insolvent

If you have previously received holiday pay from the Insolvency Service you may be eligible for additional payment related to:

  • any contractual commission you were owed by your past employer
  • any voluntary overtime you worked in the 12 weeks prior to your employer going insolvent

This does not affect any other payments you may have received from us (eg redundancy pay or loss of notice pay).

If you think you could be eligible for either payment, you need to contact the Insolvency Service.

Details about what you need to do in each circumstance are detailed below.

Applying for an additional payment for voluntary overtime

You need to contact the Insolvency Service by 13 October 2017 to apply for this additional payment.

In order for us to determine if you are eligible, we need some supporting evidence from you. So, when you contact us please include evidence of the regular overtime you worked in the 12 weeks prior to your employer going insolvent.

You can send us any evidence you have - for example copies of wage slips. Please only send copies of your documents, not the originals.

Once we receive your evidence, we’ll review it and let you know if you are due an additional payment. Please do not contact us if you do not have your supporting evidence. We will not be able to assess your eligibility without it.

Who isn’t eligible

You are not eligible for an additional overtime payment if:

  • you did not receive a payment for holiday pay from the Insolvency Service
  • you did not work regular overtime in the 12 weeks prior to your employer going insolvent

Please do not contact us if either of the above applies to you.

Applying for an additional payment for contractual commission

If you applied to the Insolvency Service for holiday pay after 31 July 2011

You don’t need to do anything yet.

The Insolvency Service will soon be contacting you directly about how to apply for an additional payment if you indicated on your application that you were entitled to contractual commission.

If you applied to the Insolvency Service for holiday pay before 1 August 2011

  • You need to contact the Insolvency Service by 21 September 2017 to apply for an additional contractual commission payment.

In order for us to determine if you are eligible, we need some supporting evidence from you. So, when you contact us please include copies of the following documents:

  • your contract of employment with your employer at the time (or other evidence relating to that contract)
  • evidence of the commission you usually earned or evidence of the commission you earned in the 12 weeks prior to your employer going insolvent

Please only send copies of your documents, not the originals.

Once we receive your evidence, we’ll review it and let you know if you are due an additional payment.

Please do not contact us if you do not have your supporting evidence. We will not be able to assess your eligibility without it..

Who isn’t eligible

You are not eligible for an additional payment if:

  • we rejected your application for payment and you did not receive any money from the Insolvency Service.
  • you did not receive a payment for holiday pay from the Insolvency Service

Please do not contact us if either of the above applies to you.

Sending us your evidence

Please send copies of your evidence to: Email address: redundancy.payments@insolvency.gsi.gov.uk

Postal address:

The Insolvency Service
Redundancy Payments Service
PO Box 16685
Birmingham
B2 2LX

Published 14 September 2017
Last updated 27 September 2017 + full page history
  1. Initially this notice referred to contractual commission only, but a separate judgement was passed so that voluntary overtime should also be considered when paying holiday pay owed for redundancy.
  2. First published.