[Ireland] Significant labour court decision on the calculation of annual leave pay

In Ireland, in a recent Labour Court decision, the Court determined that regular and rostered overtime should be included in the calculation of pay during annual leave, Mondaq reports.

This decision (Eamonn Ryan v Carlow County Council (DWT2312)) is a significant one because it marks a change in the approach adopted previously by the Court on this issue. According to Mondaq, a particularly relevant factor in the Court's decision is that the employee's overtime was regular and predictable and therefore accounted for a significant portion (more than 22 per cent) of his total pay.

The question of whether or not overtime should be included in the calculation of pay during annual leave has reportedly led to a significant body of case law at both domestic and EU levels in recent years. The current statutory regime in Ireland (namely, the Organisation of Working Time (Determination of Pay for Holidays) Regulations 1997) explicitly excludes overtime from the calculation of pay during annual leave, however, this is arguably inconsistent with more recent EU case law on this point which was considered by the Court in its decision.

Action points for HR and in-house counsel

Mondaq highlights this as an important decision for employers in Ireland whose employees work regular and rostered overtime and that overtime is not reflected in the calculation of the employees' pay during annual leave.

Source: Mondaq

In Ireland, in a recent Labour Court decision, the Court determined that regular and rostered overtime should be included in the calculation of pay during annual leave, Mondaq reports.

This decision (Eamonn Ryan v Carlow County Council (DWT2312)) is a significant one because it marks a change in the approach adopted previously by the Court on this issue. According to Mondaq, a particularly relevant factor in the Court's decision is that the employee's overtime was regular and predictable and therefore accounted for a significant portion (more than 22 per cent) of his total pay.

The question of whether or not overtime should be included in the calculation of pay during annual leave has reportedly led to a significant body of case law at both domestic and EU levels in recent years. The current statutory regime in Ireland (namely, the Organisation of Working Time (Determination of Pay for Holidays) Regulations 1997) explicitly excludes overtime from the calculation of pay during annual leave, however, this is arguably inconsistent with more recent EU case law on this point which was considered by the Court in its decision.

Action points for HR and in-house counsel

Mondaq highlights this as an important decision for employers in Ireland whose employees work regular and rostered overtime and that overtime is not reflected in the calculation of the employees' pay during annual leave.

Source: Mondaq