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Tag Archive

The continued holiday pay saga: Voluntary overtime

Regular readers will be aware that the Bear Scotland case gave a sense of security to employers when the Employment Appeals Tribunal (EAT) ruled that non-guaranteed overtime (where the employer is not obliged to provide overtime but the employee is obliged to work it if asked) is required to be paid during annual leave as a form of “normal remuneration”. This impliedly left voluntary overtime (where both the employer and employee are equally not obliged to offer or work overtime if they do not wish to arrange such) out of the holiday pay calculation.

However, this sense of security has been short lived. The fact that the question on voluntary overtime was left unanswered has naturally enticed a future tribunal to include voluntary overtime in the calculation of holiday pay under the Working Time Directive (WTD). This was always going to happen and really it was just a matter of when. 

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Non-Guaranteed Overtime to be included in Holiday Pay

Big happenings this week in the world of employment law in the form of Bear Scotland Ltd & others -v- Fulton & others. In this widely reported casethe Employment Appeal Tribunal (EAT) handed down a much anticipated decision as to whether holiday pay should be calculated to include remuneration beyond basic salary. It was held that this would be the case for the standard four-week annual leave entitlement but not for the additional 1.6 weeks under the UK’s Working Time Regulations 1998 (WTR).

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Employer deductions from wages must be clearly itemised

Checking the fine print on a wage slip is always a good idea. Ambiguous acronyms that are only truly understood by the payroll department often abound and if one does not know what these mean, in particular as relates to deductions from said pay packet, then how can one be certain that these deductions are correct and lawful?

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