An employment tribunal has held that payments for purely voluntary overtime should be included in holiday pay.
We examine overtime working arrangements and pay rates in our 2016 survey.
In Patterson v Castlereagh Borough Council  IRLR 721 NICA, the Northern Ireland Court of Appeal held that a Northern Ireland industrial tribunal had erred in excluding voluntary overtime from the calculation of the claimant's outstanding holiday pay
The Northern Ireland Court of Appeal has held that there is no reason in principle why voluntary overtime should not be included in holiday pay, if it is normally carried out and is an "appropriately permanent feature" of the worker's remuneration.
In Bear Scotland Ltd and others v Fulton and others; Hertel (UK) Ltd v Woods and others; Amec Group Ltd v Law and others  IRLR 15 EAT, the EAT held that payment in respect of overtime that the worker is obliged to work when it is available, but that is not guaranteed by the employer, constitutes part of the worker's normal remuneration and as such should be included in the computation of the worker's holiday pay.
The Employment Appeal Tribunal (EAT) has held that regular non-guaranteed overtime should be included in holiday pay calculations, but the EAT has limited the potential for workers to succeed with claims for historical non-payment of holiday pay.
An employment tribunal has controversially held that a worker's overtime should be included in the calculation of holiday pay, in a decision that is sure to be appealed.
Practical guidance on how to set up and manage an overtime system, including overtime pay; time off in lieu and drafting an overtime policy.
HR and legal information and guidance relating to overtime pay.