Hi everyone
Did anyone else spot this case about calculation of holiday pay and voluntary overtime??? I must admit I missed this although currently non-binding, one to consider if your organisation currently has lots of voluntary overtime.
As you probably know the existing case law around the calculation of holiday pay only applies to guaranteed and non-guaranteed overtime, but the case below is the first one which I have seen which considers voluntary overtime, although the case in question does go to great lengths to say 'every case turns on its own facts' and the inclusion of rotas seems to also have had a bearing on the case.
Also I thought it would be helpful to include definitions of which is which overtime courtesy of ACAS:
Guaranteed overtime
Guaranteed overtime is where the employer is obliged by the contract to offer and pay for agreed overtime. Following a judgment in 2004, guaranteed overtime must be included within the calculation of holiday pay.
Non-guaranteed overtime
Non-guaranteed overtime is where there is no obligation by the employer to offer overtime but if they do then the worker is obliged by the contract to work overtime. On 4th November 2014 the Employment Appeal Tribunal made a ruling in the case of Bear Scotland v Fulton which covers how holiday pay should be calculated when non-guaranteed overtime is worked.
Voluntary Overtime
Voluntary overtime is where the employer asks the worker to work overtime and the worker is free to turn down the request as there is no contractual obligation on either side to offer or refuse overtime.
How do you think this will impact your organisation? Do you think it will change their approach to OT?
All the best
Sarah
Replies
Hi Sarah,
I am watching this one closely as we have a number of workers who work voluntary overtime.
At present we are avoiding any knee jerk reactions but it is certainly one to have on the radar.
Thanks
Clare