Overtime Should Count Towards Holiday Pay: Today's Ruling Could Affect Millions

Workers have today won a ground-breaking case at the Employment Appeal Tribunal to include overtime in holiday pay calculations. The ruling means some people working overtime could claim for additional holiday pay. Until now, only basic pay has counted when calculating holiday pay.

The tribunal also ruled that workers will be able to make backdated claims for a limited period. However, the ruling could still be referred to the Court of Appeal, meaning a final decision might be some time away. If upheld, the ruling will have widespread implications for companies where staff are required to perform overtime as a regular part of their job. It is not yet clear whether the ruling applies to workers doing voluntary overtime. For expert employment law advice, contact Jon Dyson at our Halifax office on 01422 339 600.