Hi All,
Following the EAT decision 'Dudley Metropolitan Borough Council v Willetts' that regular overtime should be taken into consideration with holiday pay, I'm keen to hear if you are your companies are taking any action yet on this matter or if you are waiting to see if an appeal against the ruling goes forward.
We have not calculated our voluntary overtime into our holiday pay previously however I do wonder if anyone is making any changes yet or if you already do take voluntary overtime into consideration yet when calculating holiday pay.
I look forward to hopefully getting some feedback on this.
Many thanks
Clare
Replies
Morning all
On the back of the discussions below I found this useful podcast worth a listen as it covers some of the questions below
All the best Sarah
http://www.xperthr.co.uk/audio-and-video/podcast-holiday-pay-includ...
Hi Clare
Thanks for posting this. My view is that given the decision in Lock and Bear that even if an employer waits we probably know what the outcome will be. I think practically what companies should seek to do now is to review their OT arrangements and try to put practices in places which means the OT is not 'regular'. Or look at the resourcing arrangements and why OT is necessary and whether more flexible contracts could be introduced to manage the peaks of work?
Would also be interested to see what practically other organisations are doing.
I've also included some commentary from PLC which has an interesting take on this to answer your question.
Kind regards
Sarah
Text below from PLC:
Dudley Metropolitan Borough Council v Willetts
Hi Sarah
So is this saying that in order to remove any likelihood of a tribunal claim all overtime should be included if it is normal however rare it is?
Regards
Pete
Hi Pete,
I know I am not answering your question entirely that you put to Sarah but there is debate around what is 'regular' overtime so if someone is doing overtime and it is rare then my understanding is that this will not be included.
The main question is defining 'regular' so on another forum, I was reading that an easy example is that if someone does 2 hours and then nothing else, that would not be classed as regular whereas someone else doing 4 x 1/2 hour weekly then even though it is still 2 hours that would be considered regular.
It will be interesting to see how people are going to handle this unless/until even clearer guidance comes out.
I am due to sit down next week to see as a business how we are going to handle this moving forwards.
Hopefully it won't become a major admin nightmare!
Regards
Clare