Should holiday pay include overtime?

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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Northern Accountants

Sarah and the team at Quest have provided us HR support since January 2013.

Quest Consulting Services provided us with a comprehensive employment structure with contacts and a handbook and have been on hand to help me deal with the occasional issue I have faced with team members through their telephone support service.

As our personal Consultant, Sarah provides a quality, professional and complete service which is great value for money.

Northern Accountants

Off Limits Corporate Events

Sarah has transformed our HR and has introduced systems that have taken lots of hassle away from staffing issues within our company.

We have worked with Sarah and her team for 5 years and in this time our business has grown considerably. With telephone support available for all our Managers as they need it plus Sarah and her team proactively keeping us updated on changes in legislation we are reassured that we are in safe hands.

The HR software that Quest implemented also helps us keep on top of the routine aspects of HR such as holiday bookings, recording absence, holding personnel records which then allows Sarah and her team easy access to give us relevant advice.

Our Managers have also benefited from workshops run by Sarah to help develop their skills on handling issues such as disciplinary, appraisals, recruitment etc….

The support of Quest is invaluable and provides a much more cost effective solution than employing a HR Manager in house.

Off Limits Corporate Events

10 Associates

Why would anybody NOT have Sarah working 'alongside' their business?

I've known Sarah for many years and she's always been there for me and the business when her wealth of knowledge has been called upon.

We have used Sarah and her team to handle our contracts, handbook and Health & Safety and they are readily available on the telephone when needed or on site at our premises.

Highly recommended.

10 Associates

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