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Case Law - Holiday Pay and Voluntary Overtime

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Flowers v East of England Ambulance Trust

 

The EAT ruled in this case that voluntary overtime was part of normal remuneration if it was paid over a "sufficient period of time".

 

Background

 

Various members of the ambulance crews of EEAT had clauses in their contracts relating to 'non-guaranteed' overtime (which was mandatory but irregular) and 'voluntary' overtime (which was entirely voluntary, and also irregular).

 

Each member of staff had varying levels of each type of overtime.

 

Decisions

 

On a holiday pay claim to the Employment Tribunal, the ambulance crews argued that their voluntary overtime should count towards their 'normal' remuneration.

 

On appeal to the EAT, they followed Dudley Metropolitan Borough Council v Willetts and held that voluntary overtime was part of normal remuneration if it was paid over a "sufficient period of time". That is a matter of fact for the Employment Tribunal.

 

Comment: Pay received when an employee/ worker is on annual paid leave should be their “normal” remuneration as if they were at work.

 

Also, ACAS has produced new Overtime Guidance, covering such things as:

 

  • the different types of overtime
  • working time limits on overtime
  • payment for overtime
  • overtime for part-time workers
  • the impact of overtime on holiday calculations


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