Judges Rule That Paid Voluntary Overtime Should Be Included In Holiday Entitlement

In a legal judgement this month (June 2019 ) the Court of Appeal has ruled that paid voluntary overtime which is taken regularly should be included  in holiday pay calculations, in addition to any “non-guaranteed” overtime.

 Earlier this year, in two cases before an Employment Tribunal it was ruled that contrary to the views of the relevant employers, that voluntary overtime,  in addition to non-guaranteed overtime should be taken into account when calculating holiday pay.

“Voluntary ” overtime is subject to normal payment, but not specified in the employee’s contract of employment.

In upholding the judgement, the Court of Appeal  stated that  additional, voluntary work periods should form part of holiday pay if those periods were regular enough.

The judges agreed with the Employment Appeal Tribunal (EAT) that any overtime taken of an employee’s own volition should form part of holiday pay entitlements, so long as the overtime is taken in a regular pattern and payments amount to “normal remuneration”.

The Graham Agency, keeping you informed.