Overtime Holiday Pay Decision.
In a employment tribunal case this week, the Employment Appeals Tribunal (EAT) has ruled in the case Dudley Metropolitan Borough Council v Willetts (and others), that regular overtime should be included in holiday entitlement.
The case is legally binding and thus creates a precedent for all employers in the England and Wales.
This is not about irregular overtime but if, you as an employee, work consistent and regular overtime for a sustained period, it should be included in your holiday pay entitlement.
This has repercussions across many sectors, in particular the ‘zero hours’ contract market.
In the UK, the statutory minimum paid holiday entitlement is 5.6 weeks including bank holidays. If you consistently work say an extra 10 hours per week then equally you should be entitled to the same paid holiday entitlement and not your basic hours.
What we do?
We actually include all hours worked as holiday entitlement for our staff, even if they work just an extra ‘one off’ 10 hours over the year, we include it all in paid holiday entitlement but we are not the norm.
What about work place pensions? What about sick pay? Maternity and Paternity leave? We suggest the government should legislate for the same give the EAT’s ruling.