03 February 2026 Overtime and Holiday Pay – Notice for all managers New process for claiming holiday pay for overtime worked is coming soon! Employees who have worked overtime are paid a holiday pay entitlement for the overtime hours they have worked. Employees are entitled to 20 days pro-rata in any given leave year for overtime hours they have worked. What is changing? Currently managers are required to calculate the holiday pay amount owed manually and submit OTL timesheets to make these payments. We will shortly be introducing automatic payment of holiday pay for overtime worked. This will generate the correct amount of rolled up holiday pay (equivalent to a 7.7% top up) and pay the relevant amount each pay period alongside the employee’s overtime pay. This payment will be itemised and shown separately on payslips. This payment will only be made if the employee selects the correct pay element in OTL. Guidance for all elements can be found within the OTL guide – How to create an OTL claim.docx Managers will no longer need to submit separate holiday pay for overtime claims (known as euro leave spreadsheets to payroll) once the new process is introduced. What do I need to do? Nothing for now - continue with your current process for claiming holiday pay for overtime worked, until you are informed of the switch over date. Further communications regarding the new process and switch over date will be circulated within the next few weeks. Please look out for future communication updates for further information on implementation timescales and what you will need to know. If managers have any queries or questions, or require any further information please contact the HR Operational Team by raising a helpdesk ticket in One Source How to raise a helpdesk ticket. Previous Article Next Article Please login or register to post comments.