Case Law Alert – Voluntary overtime normally worked must be included in holiday pay calculation

In this edition:

In Dudley Metropolitan Council v Willetts and Others, the EAT has ruled that an employment tribunal did not err in finding that payment for overtime normally worked on a voluntary basis was part of normal remuneration and should be used in the calculation of statutory holiday pay. Makbool Javaid, Partner and Head of Employment Law, analyses this important ruling which widens even further the factors which employers need to take into account when calculating holiday pay under the Working Time Regulations. As Makbool explains, the law requires that holiday pay must correspond to a worker’s ‘normal’ remuneration and workers must not suffer any financial disadvantage as a result of taking annual leave.