Have you updated your holiday pay calculations to include regular voluntary overtime?

Payslip overtime Print publication


Since the Employment Appeal Tribunal’s decision in the case of Dudley Metropolitan Council v Willetts, employers have been required to include regular voluntary overtime in statutory holiday pay calculations.

Employers should be aware that this is now the law and there is no longer any question mark over whether to include voluntary overtime in holiday pay.  Indeed, the decision has been given a formal Governmental stamp of approval as the Insolvency Redundancy Payments Service (RPS) has recently updated its own guidance to reflect this ruling.

The upshot of this is that holiday pay calculations that do not include voluntary overtime are vulnerable to challenge in the Employment Tribunal.  The risk of claims is heightened by the abolition of Employment Tribunal fees earlier this year.

If you would like any advice on this topic please contact David Smedley or Andrew Rayment.