Key Employment Law Data

Overtime and holiday pay

  • In November 2014 in Bear Scotland Ltd and others v Fulton 2014 the Employment Appeal Tribunal (EAT) ruled that payment for compulsory, non-guaranteed overtime has to be included in holiday pay, provided that it’s sufficiently regular to qualify as “normal” pay. This only applies to the four weeks’ statutory holiday that was originally derived from EU law and is set out in regulation 13 Working Time Regulations 1998 (WTR), not to the additional 1.6 weeks’ extra holiday that employees have to be paid entirely as a matter of UK law under regulation 13A of the WTR or any contractual holiday you offer. Also, an employee can’t claim underpaid holiday pay as an unlawful deduction f...