Should holiday pay include overtime?
The simple answer to this is yes, unless the overtime is worked on a genuine occasional and infrequent basis.
Recent court decisions have indicated that all overtime worked should be included when calculating a worker's statutory holiday pay entitlement. See our blog on When is overtime considered to be voluntary or compulsory? For more guidance.
ACAS state that ‘These court decisions apply to the four weeks of annual leave which are required under European law. All workers in the UK must receive an additional 1.6 weeks of leave by law, and some receive more as part of their terms and conditions of employment. Many employers choose to apply the judgments to this extra annual leave. Doing this is not a legal requirement but can help to keep their processes simple and understandable.’
There is still much uncertainty from business owners on how to calculate holiday and so if you are unsure, seek expert advice.
If you have any questions or concerns relating to overtime or holiday pay then call one of our HR Experts on 0844 87972886.
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