Businesses are facing a bill running to billions of pounds from employment law rulings this week in which workers claim they have been underpaid for annual statutory leave for years.
Employers fear that the outcome of two cases before the employment tribunal could force businesses to upgrade holiday pay by including a calculation on voluntary overtime and commissions.
The rulings, which are due tomorrow, could also leave them with enormous liabilities on backdated claims going back to the last century.
Business leaders are warning that the rulings could force some companies to the wall. There is evidence, too, that the issue is also holding up some takeover deals.
Holiday wages normally are calculated on basic pay, but workers and trade unions argue that overtime and