The first employment Tribunal decision has decided voluntary overtime must be included in holiday pay calculations, provided they amount to normal / regular remuneration.
White & Others v Dudley Metropolitan Borough Council, ET
As before, the case was only applied to the 4 week holiday entitlement under the Working Time Directive rather than the 5.6 weeks entitlement under the Working Time Regulations.
This Judgement will not bind other Employment Tribunals and we wait to hear whether the case will be appealed to the Employment Appeal Tribunal.
The Northern Ireland Court of Appeal case of Patterson v Castlereagh Borough Council had also decided voluntary overtime must be included in holiday pay but it was (being a Northern Irish case) not binding on the English employment tribunals and courts.
This voluntary overtime case follows the cases that decided non-voluntary overtime and commission payments should be included in holiday pay. Note: Bear Scotland Ltd v Fulton and Baxter, Lock v British Gas.