New campaign for holiday pay and voluntary overtime

Whether or not voluntary overtime should be included in holiday pay calculations has been a popular topic of discussion recently. It has been argued that organisations who do not pay their employees for exerting voluntary overtime should rethink their calculations, since we are increasingly finding ourselves experiencing more expensive living costs and as a result, need an improved income to maintain financial security.

It’s not only the lack of voluntary overtime pay that has raised concerns. A campaign has been created by the government that aims to ensure employers are providing their employees with the correct quantities of holiday pay – as it’s been noticed that many workers are being ‘short changed’.

New guidelines have been released by The Department for Business, Energy and Industrial Strategy (BEIS), in addition to an entitlement calculator, which serves to help both employers and their workers calculate their correct holiday pay. What’s more, all employees are entitled to receive all of their holiday allowance, without it negatively impacting any aspect of their worker rights and contract.

It has been found that many workers who are not working the typical 9-5 week believe that they are not entitled to holiday pay or expect to receive less than the legal entitlement. This is certainly not the case and is something of which the BEIS want to raise awareness – and actively change.

Voluntary overtime, optional working time that takes place out of the usual office hours, is taken by many workers across the UK. Although this working time is not obligatory, and this work is carried out by choice, is it fair for those employees to work unpaid?

It has been argued that if voluntary overtime is carried out on a regular basis, and that any payments made in respect of this amount to normal remuneration, then the employee should be paid for these hours accordingly.

With regard to holiday pay, the aforementioned campaign, if successfully instilled within workplaces, will undoubtedly reduce absenteeism and presenteeism rates across the UK.

If you’re an employer, or an employee, and need advice about holiday pay and/or voluntary overtime pay in your workplace, contact a member of our team here.

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