Back
Effective 1 June, we have a new address: 34 Imperial Square, Cheltenham, Gloucestershire GL50 1QZ
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
Contact
Helen Howes LLM
Solicitor
View profile
Related services
Share this article
Resources to help

Related articles

Why sole director companies should check articles of association

Corporate

A recent case has highlighted the importance of ensuring a company is incorporated with carefully drafted articles of association, if there is only one director. All limited companies must have…

Helen Howes LLM
Solicitor

How to incentivise employees in growing businesses

Corporate

How can small, growing companies incentivise their employees? One way is by putting an Enterprise Management Incentive (EMI) scheme in place, which can motivate staff to invest their time and…

Willans
Solicitors

Court rules that ‘hidden’ terms can’t be relied upon

Corporate

It’s a general legal principle that once a contract is signed, a person is bound by the terms of that contract and any terms incorporated into it (such as standard…

Helen Howes LLM
Solicitor
Contact us