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Labour Court recommends formulas for holiday pay and overtime losses

By Aoife Loughran

Historic decision · Decision date:

Place: no local area assigned from the source.

In 2004, the Labour Court recommended compensation formulas for workers at Irish Industrial Explosives Limited who lost holiday pay when irregular overtime stopped counting, and for employees whose overtime was phased out. For holiday-pay losses, the Court recommended a lump sum equal to 1.27 times each worker's actual loss, less the 16 hours already paid. For the overtime claim, it recommended treating each affected employee as having worked five hours a week, then applying the same formula. The Services Industrial Professional Technical Union disputed that a final agreement had been reached on holiday earnings. The company said it had paid 16 hours for Christmas 2001 to compensate for ending irregular overtime in holiday pay. The recommendation was signed on 12 July 2004.

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