Back
Get in Touch Menu

Tribunal confirms voluntary overtime must be included in holiday pay

02 August 2017

The Employment Appeal Tribunal has confirmed, in the case of Dudley Metropolitan Borough Council v Willetts (and others), that employees who receive regular payments for voluntary overtime should have those payments taken into account when their holiday pay is calculated.

The EU Working Time Directive requires that holiday pay must be based on ‘normal remuneration’. The definition of normal remuneration has already been held to include commission pay and guaranteed overtime, but this is the first ruling that addresses the issue of voluntary overtime.

The EAT stated that voluntary overtime, worked for a sufficient period of time on a regular and/or recurring basis, should be included in holiday pay accrued under the Working Time Regulations. Failure to pay such overtime during periods of holiday would put a worker at a financial disadvantage, and may, therefore, deter a worker from taking holiday.

An employment law masters’ graduate with extensive experience in employee relations and negotiations, Helen helps the wider employment law team advise a wide range of business clients.

We're here to help
Disclaimer: All legal information is correct at the time of publication but please be aware that laws may change over time. This article contains general legal information but should not be relied upon as legal advice. Please seek professional legal advice about your specific situation - contact us; we’d be delighted to help.
Contact
Helen Howes LLM
Senior associate, solicitor
View profile
Related services
Share this article
Resources to help

Related articles

Corporate solicitors advise management team in sale of INEOS Hygienics

Corporate

Willans’ corporate solicitors have recently advised INEOS Hygienics Limited’s management team in relation to the sale of the INEOS Hygienics to SKG Capital Partners and its ongoing investment. INEOS Hygienics…

Willans
Solicitors

Pioneering tattoo charity MTA shares client experience

Corporate

After launching Paradise Tattoo Studio from a small, single room in Cheltenham, tattoo artist Tanya Buxton was keen to explore how tattooing could help and empower people, both physically and…

Willans
Solicitors

Preparing for a management buyout

Corporate

For owners looking to sell their business, a management buyout (MBO) is one of a multitude of possible options available. What do you need to consider when preparing for a…

Peter Raybould LLB (Hons)
Partner
Contact us