Nursery World - HR Update - New rules on overtime pay

You now need to include overtime in holiday pay, says Jacqui Mann
of HR4 Nurseries

A landmark ruling from the Employment Appeal Tribunal last month found that those doing regular overtime should have payments for this factored in to holiday pay.

- Does this affect all of an employee's holiday entitlement?

Employees are legally entitled to 5.6 weeks' leave. The non-guaranteed overtime (where the employer is not obliged to offer overtime but an employee is obliged to take it if offered) only needs to be included in the first four weeks' leave. You will need to start including non-guaranteed overtime when making the first four weeks' payments.

- Will an employer be liable for back dated holiday pay?

The tribunal said that rather than being able to claim back to the beginning of their employment, employees should only be able to bring a claim within three months of the original payment being made.

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