Employer’s own contract required voluntary overtime to be included in holiday pay

In Flowers and Ors v East England Ambulance Trust, the Trust resisted claims that voluntary overtime should be included for holiday pay.
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In Flowers and Ors v East England Ambulance Trust, the Trust resisted claims that voluntary overtime should be included in calculations for holiday pay, only to discover that the entitlement already existed according to the  NHS terms and conditions of service. The critical contractual clause read: “Pay during annual leave will include regularly paid supplements, including any recruitment and retention premia, payments for work outside normal hours and high cost area supplements. Pay is calculated on the basis of what the individual would have received had he/she been at work. This would be based on the previous three months at work or any other reference period that may be locally agreed.” The EAT held that on its proper construction, the wording in the terms and conditions, (in particular the words in italics), clearly gave the right to voluntary overtime to be included in holiday pay (the right to non-guaranteed overtime having already been conceded) and provided the basis for the calculation.


This update provides summary information and comment on the subject areas covered. Where employment tribunal and appellate court cases are reported, the information does not set out all of the facts, the legal arguments presented and help judgments made in every aspect of the case. Click on the links to access full details. If no link is provided, contact us for more information.  Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, SM&B cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.

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