On 4th November 2014, the Employment Appeal Tribunal made a groundbreaking judgement that overtime should be included in holiday pay.  Rather than paying workers basic pay, holiday pay should be calculated based on average earnings in the 12 weeks leading up to the worker's holiday.  The tribunal ruled that workers could make backdated claims but only for the 3 months prior to any holiday pay being received.  The ruling could be referred to the Court of Appeal meaning that a final decision on whether overtime should be included may be years away.  However, it is worth looking at how holiday pay is calculated at the moment and also whether any change in the calculation of holiday pay is included in the calculation of pensionable earnings.  Another point to consider is that if holiday pay is based on actual earnings it could be affected if the worker is off sick at any time during the 12 week period.