Overtime counts in holiday pay!
This morning the Employment Appeal Tribunal (EAT) handed down a judgement confirming that workers have the right under the Working Time Directive (WTD), to be paid normal numeration during their 4 weeks annual leave.
Holiday pay will now need to be calculated based on the typical average pay and not only upon basic pay, which has been the long established position under the UK’s Working Time Regulations (WTR).
This therefore leaves the door open to seek clarity over the degree to which overtime must be “voluntary” and the regularity with which such overtime would need to be performed to conclude that it falls within a worker’s “normal remuneration”.
The tribunal ruled that workers can make backdated claims, but only for a limited period. The ruling could be referred to the Court of Appeal, meaning a final decision may be years away.
You can view the full article on the BBC News page here
If you are unsure of what you should be paying your employees get in touch with our Payroll Team or call 0161 249 5040