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Overtime Necessary to Complete Jobs After Shift End Should Be Included When Calculating Holiday Pay

Employers whose employees are required to work overtime after their shift has ended, in order to finish off work on emergency or other matters, should ensure they include such overtime when calculating employees’ holiday pay under the Working Time Regulations, a ruling makes clear.

Ambulance staff claimed unlawful deductions from wages on grounds that their employer had failed to take non-guaranteed overtime into account when calculating their holiday pay.

They did two types of overtime – pre-planned, voluntary overtime, and overtime required after the end of a shift (for example, because an emergency near the end of a shift meant the shift overran).

The Employment Tribunal (ET) ruled that the overtime required when a shift overran should have been taken into account when calculating holiday pay because the ambulance staff had no choice whether or not to work it. Their contractual role required them to continue their shift until emergencies had been concluded. Such non-guaranteed overtime, where the employer is not required to offer the overtime but the employee is required to work it, should be taken into account.

The ET ruled, however, that the voluntary, pre-planned overtime should not be taken into account in this case. Such overtime could only be taken into account if either of the employees were required to work it, or there was a pattern of such overtime being worked, so that it could be considered ‘regular’ or ‘normal’. There was no compulsion to work it, and no evidence of such a pattern – so it was not ‘normal’.

Operative date

  • Now

Recommendation

  • Employers whose employees are required to work overtime after their shift has ended, in order to finish off work on emergency or other matters that have arisen during their shift, should ensure they include such overtime when calculating their employees’ holiday pay under the Working Time Regulations

Case law: Flowers v East of England Ambulance Trust Case No: 3400310/2015

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Jonathan Waters
is the founder of Helix Law. Before qualifying as a Solicitor he worked in industry and in investment banking for over a decade. He was also the Partner in charge of Commercial Litigation, Employment Law and Property Litigation at Stephen Rimmer LLP. Jonathan has wide experience of helping and advising businesses to avoid or to deal with commercial disputes and in particular construction disputes.

This article is written to raise awareness of the issues it discusses and it may not be updated after it is first written, even if the law changes. It is not intended to be legal advice and cannot be relied on as such. Helix Law is not responsible or liable for any action taken or not taken as a result of  this article. If you think the matters set out affect you and you wish to apply them to your particular circumstances then we are happy to give you free initial telephone advice. 

Contact Helix Law on 01273 761 990 or email: [email protected]