Hello All,
When calculating holiday allowance, do you include overtime?
Thanks
Louise
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Replies
Interesting article by ACAS and I hadn't read it before now, so thank you Sarah.
As I work for an organisation, and actually in all the organisations I've worked in, only has non guaranteed overtime, this hasn't ever come up.
Jem
Hi
Thanks for the advice will definitely take a look at ACAS link.
Would you suggest guaranteed or non-guaranteed overtime from the extract below?
Your normal hours of work are 37.5 hours a week worked Monday to Friday. You will also be required to cover the weekend, weekday and night rota. These normal hours of work may be varied to meet the needs of the business.
You may be required to work a reasonable amount of overtime hours as directed. This may include the need to work shifts, unsocial hours and weekends.
thanks
Louise
Glad the posts were useful the example above is non guaranteed overtime.
Regards
Sarah
The judgment of a recent ECJ case affects the calculation of statutory holiday (the 4 week element of the statutory 5.6 weeks).
In order to comply with the Working Time Directive, when calculating holiday pay for the four-week basic entitlement, employers should include overtime which is guaranteed under the contract of employment (this type is the only type of overtime that must be included for the additional 1.6 weeks' paid leave also) and non-guaranteed overtime (i.e. work that the employer is not obliged to provide but which, if the employer offers it, the employee is contractually obliged to perform) which is worked for a sufficient period of time in order for it to be 'normal'.
Claims for backdated holiday payments have been limited to two years by recent legislation (The Deduction from Wages (Limitation) Regulations 2014) introduced by the Governmenat after the case ruling for all claims made after 1st July 2015.
However, asJjemma alludes to some employers have chosen to take a 'pragmatic' approach and take the view they will implement this as and when employees raise this with them, as the two year window will effectively 'move'.
I hope this helps
Sarah
Hi Louise
It should definitely be considered based on recent case law around this, here is ACAS advice http://www.acas.org.uk/index.aspx?articleid=4109
Regards Louise
Jemma