Holiday pay and voluntary overtime
Holiday pay has been a contentious issue in the workplace for some time. In the past, the court has considered whether an employee’s holiday pay should include allowances (such as “time away from base” allowance), commission and compulsory overtime. A question that had not yet been answered was whether voluntary overtime should be taken into account when calculating holiday pay, until now…
In the very recent Employment Appeal Tribunal case of Dudley Metropolitan Borough Council v Mr G Willetts and others, the Claimants (a lead group acting for 56 employees of the Council) were employed by the Council in a number of different roles including electricians, plumbers, and general repair operatives. Most of the claimants had set contractual hours of 37 hours per week with a further contractual right to 2-4 hours’ overtime. They also had the opportunity to volunteer to perform additional duties outside of their contractual duties and would be paid overtime in respect of those hours. The additional duties were entirely voluntary and the employees could drop on and off rotas as they wished.
Read the full article here.