Hot off the Press – Holiday Pay to include overtime!

The Employment Appeal Tribunal has today handed down Judgment in an extremely important case for Employers relating to Holiday Pay.

The key points are :-

1. workers are entitled to be paid a sum of money to reflect normal non-guaranteed overtime as part of their annual leave payments

2. that applies only to the basic 4 weeks’ leave granted under the Working Time Directive, not the additional 1.6 weeks under regulation 13A of the Working Time Regulations

3. claims for arrears of holiday pay will be out of time if there has been a break of more than three months between successive underpayments (subject to the reasonable practicability test)

4. travel time payments, which exceed expenses incurred and so amount to additional taxable remuneration, should also be reflected when calculating holiday pay.

The case may now be subject to an Appeal to the Court of Appeal.