UK: Voluntary overtime and holiday pay

The UK Employment Appeals Tribunal (EAT) has ruled that regular voluntary overtime should be included when calculating holiday pay. What constitutes “regular” will be a matter of judgment or agreement, but the ruling also has implications for other regular payments such as on-call, standby and special working conditions allowances. This is because the EAT took as its measure the necessity of employees receiving their “normal pay” during holiday periods. It also endorsed the current averaging period of 12 weeks to determine pay normality [ Dudley Metropolitan Borough Council v Willetts and Others].

 

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