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ARTICLE · 25 NOVEMBER 2014

New Judgment: Holiday Pay Must Now Include Overtime Payments

Wedlake Bell LLP
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Does this affect my business? Yes – it does if you pay any of your workers overtime or other allowances that could be classed as "normal" pay.

United KingdomEmployment and HR
David Israel
David Israel

Does this affect my business?   Yes – it does if you pay any of your workers overtime or other allowances that could be classed as "normal" pay.

What counts as "overtime"? Overtime includes compulsory overtime, and 'non-guaranteed' overtime which the employer was not obliged to provide, but which the worker was contractually obliged to do.  ('Voluntary' overtime was not considered but may next be in the firing line).

Do I have to include overtime in holiday pay going forward?    Yes, if overtime is sufficiently regular to constitute "normal" pay.   However this only affects the first 4 weeks of holiday (including bank holidays) in any year. For overtime which is not regular, the position is open to interpretation.

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