Holiday Pay

Pay for voluntary overtime, normally worked, is ‘normal remuneration’ for the purposes of calculating holiday pay according to the EAT in Dudley Metropolitan Borough Council v Willetts.

 

The claimants were electricians, plumbers, roofers and similar who, as well as working day jobs, also worked entirely voluntary overtime which paid additional standby and callout allowances. The EAT confirmed that to exclude such payments from holiday pay results in a financial disadvantage to workers which deters or might deter the taking of annual leave which is a pillar of EU social law. The EAT also found a clear link between the payments and the performance of their duties because when they were working the overtime the operatives were performing the same tasks as under their contracts.

 

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