Following on from the case of Flowers v East of England Ambulance Trust (full article can be found here https://www.backhousejones.co.uk/wp-content/uploads/2019/07/Employment-Newsletter-July-2019.pdf)
The Court of Appeal has recently clarified that voluntary overtime should be included in holiday pay if it extends for a sufficient period on a regular or recurring basis. Clearly this leaves scope to interpret what is meant by “regular or recurring basis” but it is further evidence of the courts desire to make sure that employees are not left out of pocket when taking annual leave.
The Court of Appeal also confirmed that allowances relating to the professional and personal status of workers should also be included if they are regularly included in their pay (for example a length of service or loyalty bonus). Payments that cover ancillary costs incurred by the worker, such as mileage expenses don’t have to be included.
In summary, workers are entitled to receive normal remuneration when they go on holiday.
Are you having a headache working out holiday pay? Give our employment team a call on 01254 828300.