Ace Insurance will appeal against a Federal Court judgement awarding five former agents holiday pay.

The company has told insuranceNEWS.com.au it will contest the decision to give the agents, formerly employed by Combined Insurance Company of America, holiday pay and compensation.

Ace accepted responsibility for the case after it acquired Combined Insurance in 2008.

The amount of damages Ace was ordered to pay was reduced last week after the judge admitted a mistake in calculating one agent’s holiday entitlements.

Assessing the claim of agent Blagoja Trifunovski, Mr Justice Nye Perram estimated his salary was $11,172.26 a week.

But after reviewing the evidence, the judge put Mr Trifunovski’s salary at $2393.36 a week.

The amount of annual leave owed was therefore reduced from $325,671.38 to $69,766.44. 

Mr Trifunovski was also awarded $7459.87 for long-service leave and $48,533.59 in interest.

He may also receive $2000 of the $10,000 penalty set by Justice Perram in his judgement against Ace.