Holiday Pay & voluntary overtime


Should voluntary overtime that is regularly worked be included in the calculation of “normal remuneration” for the purposes of calculating holiday pay?

Yes confirmed the Employment Appeal Tribunal in a recent case against Dudley Borough Council. There have been various decisions in recent years regarding which payments should be included when calculating the holiday pay due to employees and this case is a reminder that the employees should not be financially worse off as a result of taking annual leave. The salary that they receive during the period of leave should take account of all the payments they would usually receive when they are working.

Julie Taylor

Employment Law

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