Following the high-profile decisions concerning when commission and bonuses may still be payable whilst a worker is on holiday, the Employment Appeal Tribunal has supported a decision that voluntary overtime may also be payable as part of holiday pay whilst a worker is on annual leave.
This was decided in the case of Dudley Metropolitan Borough Council v Willetts and Others by the President of the Employment Appeal Tribunal, Mrs Justice Simler.
In her judgment, the President noted that:-
“The question in every case, irrespective of the label put on the payment, is whether the payment forms part of the worker’s ordinary remuneration. If payments for voluntary shifts, standby or callout payments are normally paid, they must be included in pay for holiday leave to ensure that there is no financial disadvantage as a result of taking such leave, irrespective of the source of the obligation to perform the work in question.”
Therefore, a worker who is on holiday should expect to receive the pay that they would normally receive if they were at work.
The key point here is in deciding what would constitute a worker’s normal pay. Mrs Justice Simler noted that this does not revolve around the normal working week, but around the normal pay that a worker would expect to receive.
Therefore, this judgment makes its quite clear that the issue of “a week’s pay for a week’s leave” or an equivalent description of holiday leave and pay incorporates elements extending far beyond commission and voluntary overtime to include other payments also, provided that qualify as being “normal pay”.
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