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Holiday Pay – an update

Further clarification has now been received in respect of what should be included in a calculation of an employee’s holiday pay.


It has already been decided in case law that commission, on call payments and compulsory overtime should be included along with other “normal remuneration”.  The Employment Appeals Tribunal in the case of Dudley Metropolitan Borough Council v. Willetts and Others has decided that regular payments for voluntary overtime if made with sufficient regulatory, should be included in the calculation.


On the facts of this particular case, the Employment Appeals Tribunal decided that the payments had been made over a sufficient period of time and were not exceptional and were usually paid.  Furthermore, there was an intrinsic link between the payments and the performance of tasks required under the Contract of Employment.


Employers therefore need to be especially vigilant to make sure that holiday pay is calculated correctly and consider what amounts to normal remuneration.


For further information on this, or any other employment matter, please contact Guy Salter on 01905 723 561 or by email at .

Added: 10 Aug 2017 08:51

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