Millions of workers could be entitled to backdated holiday pay if a landmark court case goes in their favour today.
Businesses face a multi-million-pound pay-out to staff if a judge agrees that holiday pay should include regular paid overtime.
An employment tribunal in London ruling on three test cases will announce whether Britain has been misinterpreting European Union law for the past 16 years by not insisting that holiday pay should include regular overtime.
Critics say the judgment could open the floodgates for claims against employers, threatening to wipe out some small businesses if they are hit with huge bills.
As many as one in six workers are believed to work regular paid overtime, so up to five million could be eligible to lodge a claim against their employer.
The European Working Time Directive, brought into UK law in 1998, says workers should receive their ‘normal’ pay when they go on annual leave.
