Overtime and holiday pay calculations - review of case law


20 / 11 / 2014

The EAT judgement Fulton v Bear Scotland Limited and Wood v Hertel (UK) Limited, delivered on 4 November 2014, confirmed that non-guaranteed overtime pay should be included in calculation of a worker’s holiday pay.
Following the decision there has been a great deal of press coverage recently of various tribunal and court decisions regarding the calculation of holiday pay, particularly in respect of overtime, and we have received a number of requests from employers for more information on this area. 
To help employers in the NHS we have worked with our strategic partners Capsticks to produce some new guidance on the implications of these decisions for the NHS. The guidance examines the central issue of all the decisions which is whether holiday pay should be calculated using basic salary only, or whether ‘additional payments’ should also be included. And if additional payments should be included, which ones?

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