Holiday overtime

legal_updates

Employers are advised to be cautious when calculating holiday pay.

Author: Katie Fitzjohn
Published:
Reading time: 1 minute

This article is 2 years old.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

The Court of Appeal have held in Flowers v East of England Ambulance Trust [2019] EWCA Civ 947 that when calculating holiday pay, voluntary overtime should be included if “the pattern of work is sufficiently regular and settled for payments made in respect of it to amount to normal remuneration. There is no separate requirement that the hours of work are compulsory under the contract.”

Whether a particular pattern of voluntary overtime is ‘sufficiently regular and settled’ is an issue that the tribunals will be required to determine on a case-by-case basis.

Employers are advised to be cautious when calculating holiday pay for their staff who regularly work overtime in order to avoid any unlawful deductions from holiday pay claims.

For advice on the above or other Employment Law issues, Lawgistics Members can get advice from the legal team or utilise HR Manager, which is available FREE to all Small Business and Professional members.

Katie Fitzjohn

Legal Advisor

Read more by this author

Getting in touch

You can contact us via the form or you can call us on 01480 455500.