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ARTICLE · 21 NOVEMBER 2017

Voluntary Overtime And Holiday Pay

RadcliffesLeBrasseur
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The issue of calculating holiday pay continues. In the recent case of Dudley Metropolitan Borough Council v Willetts and Others, the Employment Appeal Tribunal (EAT) decided that the calculation of holiday pay...

United KingdomEmployment and HR
Sejal Raja
Sejal Raja

The issue of calculating holiday pay continues. In the recent case of Dudley Metropolitan Borough Council v Willetts and Others, the Employment Appeal Tribunal (EAT) decided that the calculation of holiday pay must include payments for voluntary overtime where these form part of the worker's normal remuneration.

Legal background

Under the Working Time Regulations, workers are entitled to 5.6 weeks of statutory holiday. The 5.6 weeks of statutory holiday must be paid at the rate of a week's pay defined within the Employment Rights Act 1996.

Recent case law has established that a week's pay should include compulsory, guaranteed and non-guaranteed overtime as well as commission payments which form part of a worker's 'normal remuneration'.

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