The Employment Tribunal in Brettle and others v Dudley Metropolitan Borough Council considered whether or not voluntary overtime, voluntary standby allowances, voluntary call-out payments (and mileage payments) should have been included in the claimants' holiday pay.
The Employment Tribunal considered the previous decisions regarding holiday pay and in particular the principle that payments which employees ordinarily receive, should be included in the calculation of holiday pay. While it was the employees choice to work overtime or be on stand by and was therefore voluntary, the Tribunal found that once they had volunteered they were required to work and as such, the work was inextricably linked to the work they were required to do under the contract.
The Tribunal found that one of the claimants seldom performed overtime and therefore, in his case, it could not be said that the overtime payments were "normal pay". However, for those employees who regularly worked overtime, it was found that this should have been included in the calculation of holiday pay. The Tribunal also held that this should be taken into account for all of the holidays which employees are entitled to take under the Working Time Regulations i.e. 28 days and not just those which are required by the Working Time Directive (20 days).
This decision is being appealed to the Employment Appeal Tribunal and the EAT will hopefully provide some more definitive guidance in relation to the issue of voluntary overtime than currently exists.