Working Time Regulations - Statutory Holiday Pay

Key Points

  • Workers are entitled to receive their "normal remuneration" when taking 4 weeks' statutory holiday leave
  • European case law has established that "normal remuneration" includes remuneration that is intrinsically linked to the performance of tasks that the worker is contractually required to perform
  • It is for the national court to decide what elements of a worker's pay are intrinsically linked to the performance of tasks that the worker is contractually required to perform
  • UK employment tribunals have decided that non-guaranteed overtime and commission can be taken into account when calculating statutory holiday pay.This is now supported by authority from the Northern Ireland Court of Appeal, that the key issue is regularity of receipt, rather than whether the overtime is "voluntary".
  • This is a fast developing area and further case law is expected. 
Current: 
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