Overtime & Holiday Pay

Hi Everyone,

As an organisation we have not really been too worried about overtime on holiday pay as we do not have contractual overtime.  However now that the law has changed to 'regular' overtime (whatever that means!), we are starting to get more concerned.

We are a privately owned Manufacturing business, I was wondering what other companies with regular overtime are doing.  Have you started to pay overtime on holiday pay, we currently do nothing?  

Just trying to find out what other organisations are doing with this now.

Many thanks,

Emma 

Parents
  • We have moved two groups recently on to receiving rolled-up holiday pay, but there is a third group that might be argued to work regular overtime whom we do not intend to move over. My reasoning is as follows:

    In the first two groups, their overtime is sufficiently regular that it can be fairly argued that they are financially disadvantaged by taking holiday. In the third, whilst the overtime is regular, it is distributed in such a way that taking holiday doesn't disadvantage them financially and this is unlikely to change. Essentially: they don't miss out, so shouldn't qualify.

    In the two groups that are now getting rolled-up holiday pay, the decision was taken that, rather than calculate a precise value to their additional pay, we would pay a fixed amount based on what we consider to be a business-appropriate amount of overtime worked per day. This isn't technically compliant with the court rulings tha govern this area, but we are a small company and don't really have the wherewithal to make what would be extremely complicated calculations every time an employee in the affected groups takes holiday. We believe that the difference between what we are paying them and what they ought to be paid were we making the expected calculations is small enough to make challenging the arrangement mostly pointless.
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  • We have moved two groups recently on to receiving rolled-up holiday pay, but there is a third group that might be argued to work regular overtime whom we do not intend to move over. My reasoning is as follows:

    In the first two groups, their overtime is sufficiently regular that it can be fairly argued that they are financially disadvantaged by taking holiday. In the third, whilst the overtime is regular, it is distributed in such a way that taking holiday doesn't disadvantage them financially and this is unlikely to change. Essentially: they don't miss out, so shouldn't qualify.

    In the two groups that are now getting rolled-up holiday pay, the decision was taken that, rather than calculate a precise value to their additional pay, we would pay a fixed amount based on what we consider to be a business-appropriate amount of overtime worked per day. This isn't technically compliant with the court rulings tha govern this area, but we are a small company and don't really have the wherewithal to make what would be extremely complicated calculations every time an employee in the affected groups takes holiday. We believe that the difference between what we are paying them and what they ought to be paid were we making the expected calculations is small enough to make challenging the arrangement mostly pointless.
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