Case Update: Palanki v The Big Table Group Ltd
The Employment Appeal Tribunal (EAT) has granted The Big Table Group permission to appeal the Employment Tribunal’s decision on all grounds at a hearing on 24 September 2026 before Judge Stout.
This key litigation centers on whether tronc payments and distributed tips should be included in the calculation of statutory holiday pay, an issue with widespread implications across the UK hospitality sector and indeed any business distributing discretionary tips, service charges and gratuities through a tronc.
The ET previously held that tips distributed through the employer’s payroll formed part of “normal pay” for holiday calculations. With permission granted on all grounds, the EAT will now reconsider the legal interaction between employee-administered tronc schemes, contractual entitlements, and normal remuneration under statutory holiday pay regulations.
Given the potential precedent for hospitality operators and employers relying on tronc systems, this hearing will undoubtedly have broad application across varying sectors.
We will share further developments as the appeal progresses.
A spokesperson from BTG commented:
“We are pleased that the Employment Appeal Tribunal has granted permission to appeal on all grounds. We continue to believe that the original decision does not accurately reflect the operation or intention of independently administered tronc schemes or the way discretionary tips are distributed within our industry.
We look forward to presenting our case at the full appeal hearing. Given the significance of this issue for businesses across the hospitality sector and beyond, it is important that there is clarity and certainty in the application of the law for both employers and employees”
Paras Gorasia (Parity Chambers) and Cormac Devlin (Doughty Street Chambers) represent The Big Table Group instructed by Avril England and Emily Pitts (Gateley Legal).