The the case of Dudley Metropolitan Borough Council v Willetts and ors, 31.7.2017, EAT, which was the subject of an earlier post, deserves some further examination. This was the case which confirmed that purely voluntary overtime (and standby and call-out payments) paid with sufficient regularity to be considered part of ‘normal’ remuneration should be included when calculating an employee’s holiday pay entitlement. A key point is that it was observed that a payment would deemed to be ‘normal’ remuneration if it was paid on a regular basis, which it was suggested would include overtime paid “only one week per month or one week in five”.
The principle only applies to the basic four weeks’ annual leave under Reg 13 of the Working Time Regulations 1998 for reasons which we will not dwell on here but for a full update on the current position on holiday pay attend our free seminar on 27 October on Aycliffe Business Park. Enrol via Eventbrite: greystonelegal.eventbrite.com.