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Overtime becomes part of holiday pay

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UK companies have a multibillion-dollar bill to pay after a court said overtime is part of holiday pay. The more overtime a worker does, the higher the holiday pay will be. A judge said it was wrong to use only basic working hours to decide holiday pay. Thousands of workers can get money back from their employers from 1998. Voluntary overtime and being on stand-by for emergencies is also now part of holiday pay.

Over 15 per cent of UK workers do overtime. The UK government said: "We do not believe voluntary overtime should be included in holiday pay." Businesses said the cost of the law will be "unbearable" and could hurt the economy. A labour union was happy with the court's decision. It said the law "secures justice for our members". It added that it would continue to fight for workers to "receive their full entitlement".