"Voluntary overtime" refers to working extra hours beyond the normal or required work schedule on one's own choice or willingness. It is not mandatory or forced, but a decision made by an employee to put in additional time beyond their regular working hours.
Full definition
Concerns have also been expressed over possible pressure from businesses on employees to accept comp time over monetary compensation for overtime work, and
whether voluntary overtime could be offered only in exchange for comp time.
These workers had brought employment tribunal claims for unlawful deductions from their wages with regard the way in which their holiday pay was being calculated, arguing that the calculations should include payments
for voluntary overtime.
This means that if employees regularly voluntarily work overtime, and this pattern of work is consistent over a sufficient period of time,
then voluntary overtime pay must be included when calculating holiday pay.
What remains uncertain and therefore challenging for employment lawyers and employers and employees alike is: should holiday pay include
lost voluntary overtime?
A recent decision of the Employment Appeal Tribunal has held that employees who regularly
work voluntary overtime beyond their contracted hours may now have those payments taken into account in calculating holiday pay.
However, it remains at the discretion of employment tribunals to decide on individual cases as to
whether voluntary overtime is «regular and settled», meaning it should be part of holiday pay calculations.
In Dudley Metropolitan Borough Council v Willetts and others the EAT has ruled that payments
for voluntary overtime should be included in holiday pay calculations...
There remains some uncertainty as to whether this decision also applies to
voluntary overtime (as opposed to contractual overtime) but such is the concern among the Government that they have created a special taskforce to consider the impact of this ruling.
The Employment Appeal Tribunal (EAT) in Dudley Metropolitan Borough Council v Willetts and others has decided that
voluntary overtime should be included in the first four weeks holiday pay where such payments are regular enough to amount to «normal» pay.