A recent EAT decision has provided further confirmation that when voluntary overtime is made with sufficient regularity it will be "normal remuneration" and will need to be reflected in holiday pay. James Collings, partner, looks at the case and highlights the key points to take away.
For more information around the issue of holiday pay and for a simple calculator to help estimate your potential liability please see our Foot Anstey Holiday Pay Calculator. If you would like to discuss this case or the issue of holiday pay generally, please contact your usual Foot Anstey contact in the employment team or James Collings, partner on +44 1872 243307 or email firstname.lastname@example.org.
The decision of Dudley Metropolitan Borough Council v Willetts is the latest in a string of cases that have considered the position around reflecting overtime in holiday pay focusing on when voluntary overtime may be caught. A previous decision, Patterson v Castle Borough Council, held that voluntary overtime should count as normal pay but it was not fully argued in that case and it was only a tribunal decision. However, as the current case is an EAT decision, it will bind lower tribunals (although it may of course still be appealed to the Court of Appeal).