Holiday pay not including regular overtime

databar

I have just learnt that holiday pay should include overtime, and be paid the same as a normal weeks wage. most of the company of about 10 employees only get the basic 40hours holiday pay.
Most do at least 5 to 10 hours a week overtime. when did this ruling come in and if a few years can we get it back dated.Thank you for any help.

Undervalued

Regular overtime, yes.

The problem is, like so many things in UK employment (and other) law, there is no hard and fast definition of regular! 

It comes down to what a "reasonable person" would take it to mean, fine tuned by appeals to high enough courts to set a binding precedent.

LinLui

Actually there are very hard and fast definitions of what overtime must be included. In the absence of anything new coming through the courts, both the EAT and the Supreme Court have laid down specific definitions. There's a very good article (see link below) that explains the way the law works and how to caculate overtime inclusive holiday pay.

In theory, assuming that you are in England, you could claim this as a a debt of unpaid wages, and that would allow a claim to include backdating for up to six years. And Employment Tribunal claim would not permit backdating that far - there is precendent in tribunals for them to consider some backdating, but there is no clarity as to whether a tribunal would have to allow it or what they might allow.

Your problem might be how far you want to push this. Nobody will do it for you, so you are all going to have to stick your heads over the parapet and make demands on your employer. They may be fine about that. They might decapitate you. So before you do anything, be aware that no matter what the law says on this or any other matter, assess the risks you are taking and make sure that you are all signed up for them. And don't be a martyr - this needs to be a case of all in or none in. On so many occasions in small non-union companies, everyone is big on talk, but when the chips are down it will be a case of "nothing to do with me guv, it were all him" and every finger will be pointing at you.

https://www.thehrbooth.co.uk/blog/payroll/when-does-overtime-have-to-be-included-in-holiday-pay/

Savvy_Sue

And if you're in a union, get them onside, and if not, join and encourage everyone else to do so!