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Holiday Pay and overtime

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  • Holiday Pay and overtime

    Hi,

    I work for the NHS. I work a standard 37.5 hour week but I also do overtime. My employer has said that the overtime does not come into account for my holiday pay because it is overtime. However the overtime is based on a rolling rota, so I work overtime on a 1 of 7 basis. There needs to be someone doing the overtime every day as we need to provide 24 hour cover.

    My understanding is that if it is guaranteed overtime that it should be taken into account for holiday pay?

    Surely if it is guaranteed (24/7 cover needs to be maintained, rolling rota), and I'm expected to work it it should be included in holiday pay?

    Cheers guys
    Tags: None

  • #2
    Re: Holiday Pay and overtime

    The UK Employment Tribunals have recently decided (in Neal v Freightliner and Fulton [2013]) that even voluntary overtime should be included when calculating holiday pay. In that case, the employee’s contract required him to work 7-hour shifts, and stated that he may have to work overtime. His hours were determined by a roster and he regularly worked up to nine hours each day. The employer maintained that his overtime was voluntary and his holiday pay should include only basic pay. The employment tribunal, applying the Williams case, held that hours worked by Neal over and above his contractual seven hours were "intrinsically linked" to his performance of his role. It was irrelevant whether the overtime was voluntary or not.
    It seems that EU law requires overtime to be included in calculating holiday pay.
    Check with ACAS on any change in this ruling.......
    “The only man who sticks closer to you in adversity more than a friend, is a creditor.”

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