Call us on
0161 941 2426
In the recent case of Dudley Metropolitan Borough Council v Willetts and others EAT/0334/16 the Employment Appeal Tribunal (EAT) held that voluntary overtime should be included in ‘normal’ remuneration for holiday pay calculations. Previously it was only regular, but not voluntary overtime, that was to be included in holiday pay calculations.
The workers in this case are employed as electricians, plumbers, roofers and operations officers. They have set contractual hours and work entirely voluntary additional overtime and on-call work.
Dudley Council stated that overtime pay was not ‘normal’ remuneration as it lacked an intrinsic link to the performance of tasks required under the contract of employment. However, the EAT rejected this view on the basis that when staff were working overtime they were performing the same tasks as they do during their normal working hours. They added that to discount these payments from holiday pay calculations results in a financial disadvantage which may deter workers from taking annual leave.
This ruling now means all types of overtime, including voluntary, must be included when calculating a worker's statutory holiday pay entitlement, with the exception of overtime that is only worked on a genuinely occasional and infrequent basis.
The EAT also decided that regular out-of-hours standby payments and call-out allowances should be included in holiday pay.
In summary, workers should usually receive the same pay while they are on annual leave as they normally receive while they are at work. Therefore, we advise that your holiday pay calculations are amended to include:
“"A small organisation making big changes wanting calm and clear support on how to deliver a restructure programme: P3 supported us on all elements; with a timetable of activity for Board so they felt confident all steps were in place and importantly all staff were considered and supported; process roll-out guidance; production of letters for staff; 1:1 support for me, the MD, as we handled the emotional and personal challenges that any restructure generates, as most importantly it's about people. Thank you P3"”
Last year the Women and Equalities Committee published a report concluding that the skills of more than one million employees aged 50 or over were being wasted due to discrimination, bias and;
The first day of summer is within touching distance. A time for ice-cream, festivals, outdoor movies, cosy drinks on your patio and even the boss doesn’t look so stern wearing a short-sleeved;
Get the latest updates from P3 and great advice on how your HR can be improved.