HR Newsletter #73 Dec 2015 (Holiday Pay and Overtime)

Employment Update on Holiday Pay and Overtime


This topic has been a recent feature and I know many clients discuss this and ask many question relating to this topic.

A recent case in Northern Ireland (Patterson vs Castlereagh Borough Council) has added further clarification.

It surrounded the question of voluntary overtime (which up until now has not been used in the calculation of holiday pay)

The conclusion from this case was that there was no reason that voluntary overtime payments were not to be included in the calculation of holiday pay SO LONG AS the overtime was normally carried out and is an “appropriately permanent feature” of the worker’s remuneration.

As this was decided in Northern Ireland it is advisory only and NOT binding in England and Wales, however surely is a taste of things to come.