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From July 2015 employers will need to take into account overtime when calculating holiday pay so that it is calculated on their actual earnings, not basic pay – and a similar change taking into account commission may be on its way. We explain what this means in practice for small businesses. Following a number of cases that came before the Employment Appeal Tribunal (EAT), it was ruled that it is wrong for employers to only take into account basic pay when calculating how much an employee should be paid while they are on holiday. This means that from 1st July 2015,