Holiday pay ruling may affect millions of workers

[AAD News Feed]

Holiday pay ruling may affect millions of workers

This is a duplicate of the Blog Entry made on 4th November 2014 10:42.

*A closely-watched ruling will later determine whether millions of workers are entitled to claim for overtime to be included in holiday pay.* Across...

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[Riz]

Re: Holiday pay ruling may affect millions of workers

Update here: http://www.bbc.co.uk/news/business-29896810

Seems it has gone in favour of it counting, but precise ruling and consequences not yet released.

[pompeyfaith]

Re: Holiday pay ruling may affect millions of workers

As Ambulance chasing draws to a close a new avenue opens for solicitors

[pompeyfaith]

Re: Holiday pay ruling may affect millions of workers

Expect retrospective law rushed through parliament

11:03: HOLIDAY PAY BBC News Channel
Simon Walker, director general of the Institute of Directors says we are making employment law "on the hoof". He is reacting to the ruling on overtime pay. He says any retrospective element would be the most damaging for employers. He is pleading for the government to take action if necessary to protect firms. He also said the situation could be a "bonanza" for lawyers.

[pompeyfaith]

Re: Holiday pay ruling may affect millions of workers

Bear Scotland Ltd & Ors -v- Fulton & Ors [2014] UKEAT 0047_13_0411

http://www.bailii.org/uk/cases/UKEAT...7_13_0411.html

[SXGuy]

Re: Holiday pay ruling may affect millions of workers

Really hard ruiling for employers. Retrospective underpayment of holiday pay based on overtime. Gonna hit them hard. Not to mention extra employers NI due also. Just pray that HMRC don't suggest previous p35 submissions need amending or there's penalty implications on top. Luckily for me all payroll clients have employers who work hourly rates only so all holiday pay has been calculated including overtime.

[oscar]

Re: Holiday pay ruling may affect millions of workers

If this is retrospective, will previous employees have to take action, or should they be contacted automatically?

[pompeyfaith]

Re: Holiday pay ruling may affect millions of workers

This Govt is very pro-business so I expect emergency retrospective legislation to follow.

[SXGuy]

Re: Holiday pay ruling may affect millions of workers

If this is retrospective, will previous employees have to take action, or should they be contacted automatically?

Unsure, but I will let you know if it happens, as I will no doubt get a few letters for my clients.

However, I would imagine, most employers will keep a low profile unless they are forced to do it.

[SaltnVinegar]

Re: Holiday pay ruling may affect millions of workers

Putting aside the implications for employers, I cannot help but think the workers who took this to tribunal have cut off their noses to spite their faces.

Once the short term financial victory has been achieved, and they have received the small sum of money for their holiday pay, what do they think is going to happen?

Employers will simply stop paying compulsory O/T and workers will lose a significant chunk of their income. The employer will then look at bringing in temps (as the cost of temps will now be offset due to their increased costs of paying increased holiday), or new employees to cover, or this could even drive employers to consider zero hour contracts when perhaps they would not have done so.

Those employees on commission, could find their basic rate of pay reduced, therefore become much more commission based, (and as is always the case, this would drive certain undesireable behaviours), and if the same ruling could then be applied so that holiday pay would then also likely to be reduced if an employee should happen to fail to hit targets which drive those commission payments........

All this sort of action does is create a 'seige' mentaility between companies and employees, is not helpful to any worker in the long run, and actually pushes companies to further consider the people who work for them as 'resources' (hence the term HR), rather than human beings.

[SXGuy]

Re: Holiday pay ruling may affect millions of workers

I agree with you in most part but I'm unsure if it would force employers to seek agencies. Take a care home worker as an example. Some are contracted to do 18 hours a week at basic pay. Even if they did an extra 12 hours a week I can't see it being more expensive than an agency worker on 12 pound an hour.