Manage overtime

If your workers get overtime, commission, or bonuses you must include these payments in at least four weeks of their paid holiday.

You may choose to include overtime, commission, and bonus payments in the full 5.6 weeks' paid holiday (statutory annual leave) but you don't have to. This is because the law on overtime, commission, and bonus payments being included in holiday pay is based on the EU Working Time Directive, which is 4 weeks' holiday only.

The question of how much pay a worker is due during a period of holiday has been the subject of several court judgments in recent years. For further advice, you can contact the Labour Relations Agency (LRA) Workplace Information Service on Tel 03300 555 300.