Back

Our offices will be closed over the Easter weekend from 5:30pm on Thursday 28 March. We will reopen as usual at 9am on Tuesday 2 April.

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
Associate, solicitor
View profile
Related services
Share this article
Resources to help

Related articles

Changes to company law – what businesses need to know

Corporate

This week, initial changes to company law – including the biggest changes to Companies House since it began – will start to take effect. Here, our corporate and commercial team…

Chris Wills LLB (Hons)
Partner

Act to combat economic crime has received royal assent

Corporate

Earlier this year we reported on the register of overseas entities, which was created under the Economic Crime (Transparency and Enforcement) Act 2022. This move formed part of a significant…

Chris Wills LLB (Hons)
Partner

Overview: Family investment companies

Corporate

A growing trend of late has been the increasing use of family investment companies. Our corporate & commercial team gives an overview of what they are and their benefits. What…

Helen Howes LLM
Associate, solicitor
Contact us