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Overtime Pay Calculations…

By September 16, 2016Uncategorized

A fast moving topic.  Since the Bear Fulton v Scotland case in 2014 other cases have reinforced that overtime needs to be closely looked at when working out holiday pay to ensure that when someone is on annual leave they do not suffer a pay detriment as a result.

Recently, in Brettle v Dudley Metropolitan Borough Council ET/1300537/15, consideration focussed on whether voluntary overtime should be included in the calculation of statutory holiday pay.  It decided it should be included in absence of agreement to the contrary and would therefore give further clarity to what “normal remuneration” includes.

Notes: The calculation is only required for the first 20 days’ annual leave in any given annual leave period.  Any leave above the first 20 days can be paid at the employee’s normal rate.  Case law on this occasion is not binding but gives a representation of how an Employment Tribunal may interpret legislation.