Great Britain: overtime hours to be factored into holiday pay calculations

On November 4, the Employment Appeal Tribunal ruled that overtime hours should be factored into the reference salary used to calculate annual holiday pay (at least for the minimum 20 days leave as stipulated by the EU Working Time Directive). In view of the outcry raised by this ruling, the government announced it would set up a task force to assess and limit the impact of the ruling.
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Influence of EU law. The Unite union is at the source of this judgment, which ruled on three cases. European law (Directive 2033/88 concerning certain aspects of the organization of working time) states that workers are entitled to receive an amount that is at least equal to their normally received remuneration during their annual leave. ECJ case law indicates that normally received remuneration includes all amounts linked intrinsically to the performance of the tasks which the worker is required to carry out under his contract.

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