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
Contact
Helen Howes LLM
Trainee solicitor
View profile
Helen Howes
Related services
Share this article
Resources to help

Related articles

Brexit Q&A: How can my business manage post-Brexit risks?

Commercial

The key to navigating Brexit for any business is planning. Right now, despite the uncertainty around what Brexit may or may not look like, all businesses (whether they trade directly…

Chris Wills LLB (Hons)
Partner

Brexit Q&A: How will Brexit affect data protection for businesses?

Commercial

After Brexit, a UK company may find itself subject to both the GDPR and the parallel Applied GDPR regime. Consequently, a data breach might well fall within the competence of…

Kym Fletcher LLB (Hons) Euro
Consultant, solicitor

Brexit Q&A: How will the new immigration rules implemented after Brexit affect my business?

Business immigration

Businesses who are reliant on skills of EU citizens and who expect to be employing EU citizens arriving in the UK post-Brexit will need to consider the implications of the…

Helen Howes LLM
Trainee solicitor
Contact us