With spring here (finally) and summer on the way, it is the time when
there are extra jobs to be done, gardens to be tended, parties arranged
and many domestic and household staff will work overtime. But if that
overtime is necessary for a continuous period, are staff right in asking for it to be included in their holiday?
There has been some publicity on this with regard to recent cases, so
where do you, as the employer stand?
If your employees always work the same number of hours, calculating
holiday pay is easy enough. Standard legal holiday pay for most
employees is at least 28 days paid annual leave equivalent to 5.6
weeks of holiday. But when the overtime is occasional, what is the situation? In essence
there are three different types of overtime: compulsory, non guaranteed
and voluntary. If the requirement for compulsory overtime is written into
the employee’s contract of employment, the overtime payment must be
included in holiday pay calculations.
When non guaranteed overtime becomes a sustained pattern again, this
should be included in holiday pay calculations as nowadays a Tribunal
will probably rule for the employee. The same goes for voluntary
overtime, if it fits into a sustained pattern over a period of time.
However in all cases, The overtime element is however only paid for
four weeks of the 5.6 weeks entitlement.
The Graham Agency, keeping you informed