Worker rights for Pimlico Plumbers

A case heard at the Supreme Court last week could have a lasting effect on the so-called “Gig” economy here in the UK.

What is the “Gig” Economy?

The “gig” economy is described as “the labour market characterised by the prevalence of short-term contracts or freelance work, as opposed to permanent jobs”.

People who work within the gig economy will only be paid for the work that they carry out, e.g. couriers etc. Though sometimes they may be entitled to holiday pay.

Background

Plumber Gary Smith worked solely for Pimlico Plumbers and was classed as self-employed for tax purposes. Mr Smith paid self-employed tax and was VAT registered.

Mr Smith worked for Pimlico Plumbers for six years but after suffering a heart attack, he requested a reduction in his working hours from five days per week to three days. Pimlico Plumbers denied this request and Mr Smith was dismissed.

During his time working for Pimlico Plumbers, Mr Smith was required to wear the company’s uniform, drive the company’s branded van, work when he was told to, and could not pass any work to anyone else of the same qualification and experience.

Original Hearing

Mr Smith brought proceedings against Pimlico Plumbers at an Employment Tribunal in 2011, alleging that: –

  • he had been unfairly dismissed;
  • Pimlico Plumbers had unlawfully deducted amounts from his wages;
  • he had not been paid for a period of statutory annual leave; and
  • he had been discriminated against because of his disability.

The Employment Tribunal made the decision that Mr Smith had not been an employee under a contract of employment, and therefore could not complain of unfair dismissal.

However, the Employment Tribunal did decide that: –

  • under section 230(3) of the Employment Rights Act 1996, Mr Smith was a ‘worker’;
  • under Regulation 2(1) of the Working Time Regulations 1998, Mr Smith was a ‘worker’; and
  • under section 83(2) of the Equality Act 2010, Mr Smith had been in ‘employment’.

This meant that Mr Smith could proceed with the latter of his three complaints.

The Employment Tribunal made directions to consider these complaints substantively at a later date.

Pimlico Plumbers appealed this decision at an Appeal Tribunal and then at the Court of Appeal, but were unsuccessful at both attempts.

The Court of Appeal ruled that Mr Smith was a worker because of his lack of control over the work that he carried out (he was contractually obliged to do a minimum number of hours work per week) and also because he did not have the right to transfer his work to a subordinate.

Supreme Court Ruling

Pimlico Plumbers then appealed again to the Supreme Court but this did not go in their favour again.

The Supreme Court was asked to consider whether or not Mr Smith had the right to send a substitute to carry out any work he was given by Pimlico Plumbers. The Supreme Court found that Mr Smith was entitled to do this but that any substitute had to be under contract with Pimlico Plumbers.

Therefore, the leading feature of Mr Smith’s contract was one of an obligation of personal performance.

Another issue asked of the Supreme Court was whether or not Mr Smith was marketing his services elsewhere or whether he was an integral part of Pimlico Plumbers, and as such, whether Pimlico Plumbers was a client or customer.

The Supreme Court held that Mr Smith had some independence in terms of operational and financial obligations but that his services were marketed by Pimlico Plumbers. He was also subject to Pimlico Plumbers’ strict regulations (e.g. he was required to wear the company’s uniform, drive the company’s branded van, and work when he was told to etc). Therefore, Pimlico Plumbers was not a client or a customer.

This meant that Mr Smith was a worker and therefore had various employment rights including the right to be paid minimum wage and holiday pay.

Mr Smith’s complaints will now be sent back to the Employment Tribunal for it to make the final decisions.

Implications

This case will have a far-reaching effect on the gig economy and the rights of all independent contractors.

Other businesses who use independent or self-employed contractors could see a huge wave of claims made against them as a result of this ruling.

Charlie Mullins, CEO of Pimlico Plumbers, said “… thousands of companies across the UK, who use contractors in an honest and responsible way, remain exposed to huge potential claims in the future.”

However, it is highly unlikely that other cases, like those involving Uber and Deliveroo, will be stopped in their tracks.

All businesses have different ways in which they work. They also have different contracts and make different demands on their staff.

For example, some businesses will allow a worker to ask someone else of equal qualification and experience to do the job instead, but others don’t.

And that is one of the key tests of employment status.

If you would like any advice on the gig economy and how this ruling may affect you and your staff, contact us at info@orchardemploymentlaw.co.uk or call us on 01634 564 136.

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New case could affect Notice Periods

You may well have seen in the news recently the reports of an Appeal Case regarding when a Notice Period starts in relation to the termination of employment.

What was the case about?

The case concerned Mrs Haywood, who was made redundant by Newcastle-Upon-Tyne Hospitals NHS Trust in 2011.

Having been informed that she was at risk of redundancy, Mrs Haywood had advised the NHS Trust that she would be on holiday from 19th April 2011 until 3rd May 2011.

The NHS Trust then sent three letters to Mrs Haywood on 20th April confirming that she was being made redundant with 12 weeks’ notice, which the NHS Trust advised would expire on 15th July 2011.

One letter was sent to Mrs Yahwood by recorded delivery and an advisory card was posted through her letterbox on 21st April. Mrs Haywood’s father-in-law collected the letter from the sorting office on 26th April and left it at her home on the same day.

Mrs Haywood returned from holiday in the early hours of 27th April and went straight to bed. She read the letter later that morning.

The other two letters were sent to Mrs Haywood by standard post and to her husband’s email address, which Mr Haywood read mid-morning on 27th April.

The important question raised by Mrs Haywood was, when was her letter of notice of termination deemed to have been received?

If Mrs Haywood’s notice period expired AFTER her 50th birthday, then she would be entitled to receive a higher pension but she would need to have been given her letter of notice of termination after 26th April 2011.

There was no clause in Mrs Haywood’s contract which expressly stated when notice applies and so the High Court found that the notice of termination was only effective once Mrs Haywood had actually read the letter of notice, which was on 27th April 2011.

Newcastle-Upon-Tyne Hospitals NHS Foundation Trust appealed this ruling which was subsequently dismissed by the Court of Appeal, which held that, because there was no express clause in Mrs Haywood’s employment contract which specified when a notice of termination is effective, the notice of termination only takes effect from the date it is received by the employee, giving them chance to personally take delivery of the letter containing the notice.

In this case, Mrs Haywood opened and read the notice on 27th April, meaning that her notice period expired on her 50th birthday and that she was therefore entitled to receive a higher pension.

What does this mean for Employers?

This ruling could have a major impact on employers, because the Court’s decision implies a term into all contracts of employment that notice to terminate the contract of employment will only take effect from the date on which the employee has read the letter giving notice (or has had reasonable opportunity to do so).

In order to reduce or remove the effect of this ruling, employers should,

  • where practical, give notice of termination to the employee in person and follow this up in writing.
  • If this is not possible to do, then the employer should send written notice of termination by recorded delivery, which will assist in proving that notice has indeed been sent to the employee.
  • The employee would then need to provide evidence as to why they did not have reasonable opportunity to read the letter.

However, the best way to mitigate the effect of this ruling is to include an express clause in your employment contracts to make in clear of when notice is deemed to take effect.

If you would like any more information on this matter, or for more information on what clause to put into your employment contracts, email us at info@orchardemploymentlaw.co.uk

Recruiting and Appraising

Whether you record your year from January to December of April to March I am sure you will agree that this quarter has zoomed by.

Now that the Big Freeze has left us we are all looking forward to Spring. April can be a busy yet exciting time for business. For many it is the beginning of the financial year often meaning a fresh look at recruitment, marketing, budgeting and planning.

If you are recruiting you should be mindful about the wording you use for your advertisements. Employers can be liable for discrimination before a person has even worked for you so it important not to use unnecessary descriptions that imply you are looking for a man, woman or a person of a particular age.

Your job advertisement is just like any other marketing material. It should speak directly to the type of person you are trying to recruit.

If you are a fun and flexible business the language which you use should ooze fun. If you are a traditional business which is looking for corporate applicants then the wording you use should be reflective of that.

A diverse workforce is a strong workforce. Not only should be seeking not to discriminate against applicants of various ages, cultures and gender but we should also be seeking to employ people with disabilities.

Craft your recruitment process in a way that is disability friendly. It is perfectly acceptable to state that you are a disability aware employer and that you are seeking to employ someone from all backgrounds.

April is Autism Awareness month. Job candidates with autism do not always thrive in a traditional interview but they may be the best person for the job. People with autism often have a great ability to focus on a task, recall data and pay attention to some of the smaller details.

One of the ways which you can make your recruitment process inclusive is to have a working interview. Invite all candidates to work with you for an hour or two and see how they perform in action.  You could also use specific questions rather than general questions on an application form so that a person who is autistic will find it easier to answer correctly.

Whilst it is great to recruit it is also important to nurture your existing staff. If you are not doing appraisals, you may want to reconsider. Appraisals can help you to find out any ambitions that your staff may have. Once you know that an employee would like to become a supervisor, a manager or to broaden their skill set you can create a path to help them reach that destination within your business.

Lots of businesses lose talent because it has not been nurtured or appreciated and this can be both a financial cost and loss of skill to an employer. Use appraisals to tell your staff what they are doing well and how they can improve.

If you have concerns about a team members, work, performance of attitude you can also use this opportunity to document and discuss your concerns. Early intervention can reduce problems with staff later in the year.

An appraisal should be a two way communication tool. Create an open environment where staff can tell you about things which you could improve as an employer. This will make your working environment a better place for current and future staff.

Whether you are recruiting, or appraising April is the perfect opportunity to review your current employment contracts and employment policies. Ensure that they are still working for you and that they are still legally compliant.

If you would like HR Support or Employment Law advice please contact us at http://www.orchardemploymentlaw.co.uk

 

Have you got staff who are on-call?

A recent case could have a big impact on employers who employ staff who work “on-call” and on “standby”.  Restaurants, Hotels, Care providers and Hospitals may have to revisit their policies following the case of Maztak v Nivelles Fire Service

Mr Matzak was a volunteer firefighter with the Nivelles Fire Service in Belgium, who was employed to work alongside professional, full-time firefighters to help with operations and standby services, which were arranged by rota at the beginning of each year.

All volunteer firefighters were paid an annual allowance for their standby work.

Under his contract of employment, Mr Matzak and other volunteer firefighters, as well as professional firefighters, were required to adhere to specific residence requirements, including: –

  1. To be domiciled or reside in a place so as not to exceed a maximum of eight minutes to reach the Nivelles fire station when traffic is running normally and complying with the Highway Code;
  2. During periods of standby duty, every member of the volunteer fire service serving at the Nivelles fire station must: –

 

  • Remain at all times within a distance of the fire station such that the period necessary to reach it when traffic is running normally does not exceed a maximum of eight minutes;
  • Be particularly vigilant so as to remain within range of various technical means used to call staff and to leave immediately, by the most appropriate means, when staff on standby duty are called.

Mr Matzak brought judicial proceedings against Nivelles Fire Service in December 2009, after his one-year probation period ended. The details of the proceedings were that his employer had refused to pay for his “stand-by” hours.

He also claimed that his employers had failed to pay acceptable compensation for his services as a volunteer firefighter, and, in particular, that his standby services should be classed as working time.

Although the Nivelles Labour Court upheld Mr Matzak’s case in March 2012, the Nivelles town appealed the ruling at the Brussels Higher Labour Court.

The Higher Labour Court partially upheld the appeal in September 2015, because under Belgium law “volunteers in the public fire services and the rescue zones as provided for in the law […] on civil security and volunteers in operational civil protection units do not fall under the definition of workers”.

After this ruling was made, the court was asked to determine the correct definitions of working time, in order to decide whether or not Mr Matzak’s standby services should be classed as working time or not.

All European countries must follow the Working Time Directive. The Working Time Directive provides minimum health and safety requirements for working time, including daily and weekly rest periods and annual leave.

“Working time” is referred to as “any period during which the worker is working, at the employer’s disposal and carrying out his activity or duties, in accordance with national laws and/or practice”. “Rest period” is referred to as “any period not classed as working time”.

The court was asked to consider whether or not volunteers should be classed as workers and therefore included in the regulations under the Working Time Directive.

They were also asked to consider whether or not Mr Matzak’s standby work should be considered as working time under the Directive, despite him being at home whilst on-call “given the constraints on the worker at the time preventing him from undertaking other activities”.

The court found that Mr Matzak was indeed a worker, even though he held a voluntary position.

The court also found that if the standby period was excluded from the concept of working time, this would have a serious impact on the objective of ensuring the health and safety of the workers by granting them satisfactory breaks and rest periods.

The ruling will mean that there is more than likely going to be a huge deviation in legislation because staff who work “on-call” and “standby shifts” at home will be counted as “working time”.

This will have wide-ranging implications upon any employers who need their employees to keep to specific criteria regarding their working hours but which restricts their movements during their free time. 

All employers who have staff working on-call need to carefully consider whether or not they need to place significant restrictions on their employees’ activities when they are on-call.

It may mean that employees are working more than 48 hours each week. It could also have pay implications.

If you would like any further information or advice on this matter, please call us on 01634 564 136 or email us at info@orchardemploymentlaw.co.uk

Do you need to give an extra day as holiday this Easter?

You were probably as shocked as me to see that UK shops started selling Easter eggs on Boxing day and whilst I refused to buy Easter eggs before valentine’s day it makes sense for business to prepare ahead of time.

This year the Easter holiday is early with Good Friday being on 30th March. This may have a  direct impact on businesses whose holiday year runs from April to March in line with the tax year.

This is because the early arrival of Good Friday means that there are 9 bank holidays in this financial year instead of the usual 8. The impact will depend on the wording of the employment contract.

If an employment contract states that an employee is entitled to 20 days leave plus bank holidays they will have an extra days holiday this year. I am sure no staff will complain about that. However if your contracts state that employees are entitled to 28 days annual leave inclusive of bank holidays there will be no changes.

That being said employers may want to remember the following things about bank holidays.

 

  1. There is no legal right for employees to have bank holidays off.
  2. There is no legal right to be paid time and a half, double time or any extra pay for working on a bank holiday.
  3. Employers can impose annual leave on staff if they have a shut down period on bank holidays.

 

Of course these things are all subject to previous conduct and what is written in the Employment Contract.

 

If you would like help with Employment Contract, managing staff, HR or any Employment Law matters contact us via our website at www.orchardemploymentlaw.co.uk/contact

 

In the meantime, start stocking up on Chocolate and get ready to have a Happy Easter.

 

 

Moving Forwards

So, Christmas is over and we’re into the New Year already.

You may well be thinking that you need to move your business forward in 2018 but you have no idea how to do that.

This can be a tricky subject, and one that many businesses keep putting off simply because they don’t know what else to do. Muddling along as you’ve always done, however, is not good practice, especially if what you’ve been doing in the past hasn’t really worked properly.

Now is the time to start implementing new ways of working and making progress so that 2018 is as successful for you, and your staff and customers, than ever before.

Here at Orchard Employment Law, we have a few hints and tips on what to do to make your business more successful this year and into the coming years.

  • Keep up with your competitors

First up, you need to keep up to date with what your competitors are doing. Find out what they are offering to their customers and see if you can offer something similar to that. Obviously, you will want to make your products and/or services unique but by knowing what else is on offer to your customers means that you are ahead of the game.

  • Reach out to your clients

In keeping with the above, talk to your clients about their needs and requirements. You may very well be surprised at what they say. They might tell you that they need something that you’ve been considering and working on but haven’t launched yet as you felt that the market for it wasn’t right.

  • Don’t get comfortable

All businesses will do this at some point. They will start thinking that everything is going exactly as it should be and that there is nothing that needs to be done to improve and progress. Do not think like this. Getting comfortable will be your downfall. There are always things that can be done to improve and progress your business.

  • Take action

Don’t get comfy but take action instead. Stop procrastinating and get moving. Make those tough decisions. Sitting on your hands and burying your head in the sand will not solve any problems, so head them face on instead.

  • Talk with your staff

As well as talking with your clients, talk with your staff as well. Listen to their ideas and suggestions. See what they think is going right and what (and how) they think things can be improved. This will give them confidence and make them feel that they are valued. Which will lead to better motivation and more productivity.

  • Monitor progress

Here, we don’t just mean monitoring progress with sales etc, but encourage your staff to monitor their own progress and keep a track of their own successes. Have targets, not just for your staff but for yourself and the future of your business, and monitor how and what you and your staff are doing to reach those targets.

  • Have integrity and trustworthiness

You need to grow a reputation of trustworthiness. Your business will rely on many outside factors during its lifetime and by cooperating with others and proving that you are trustworthy will go a long way to being successful. Don’t promise what you can’t deliver, don’t ask for something from someone else that you wouldn’t be prepared to give yourself.

Above all else, show that you have integrity and that you can be trusted.

Getting to know Lucy

As many of you will know, Orchard Employment Law was started just over two years ago by founder Jemma Fairclough-Haynes. Jemma’s aim is to support employers throughout the lifecycle of an employee, to promote employee engagement and to minimise the risk of litigation.

Jemma has recently been joined at Orchard Employment Law by Lucy Torble. Lucy joined us on 5th December, as Personal Assistant to Jemma.

Lucy’s Work Experience

I have many years experience within the legal profession, starting over fifteen years ago as a Re-Mortgage Case Handler at a busy law firm in Canterbury. I then moved on to be a Conveyancing Assistant at another law firm in Canterbury, where I assisted the Conveyancing Solicitors with all aspects of buying and selling property.

From there, I moved into Private Client work (this includes Wills, Probate and Court of Protection matters) as a Legal Secretary. After four years here, I then moved to Broadstairs as a Conveyancing Paralegal, and then to Faversham as a Conveyancing Executive.

I then left the legal profession for around ten months to have my son Ethan, returning to work in May 2016 as a Private Client Paralegal on a part-time, temporary basis.

After this contract finished, I decided that I wanted to spend all of my time with my son and so left the legal profession completely. My husband runs his own content marketing and social media strategy business and I assisted him with various different aspects of this during my time off.

Our son is now attending nursery a couple of days a week and I felt that the time was right to venture back into the legal profession and start to re-discover myself (and not just being Ethan’s Mummy and Richard’s wife!) and my love of law.

About Lucy

I love being able to help people and my knowledge of law and legal practices enables me to assist individuals and businesses with many different aspects of UK legal matters.

I love being pampered, and would quite happily spend an entire day, if not longer, at a spa! I also enjoy reading, which, admittedly, is difficult with a toddler but I do try. And what girl doesn’t like shopping?

I have a small addiction to tea, but it has to be made just the way I like it – strong with just a dash of milk. My husband still hasn’t got this right. And what better way to enjoy a cuppa than with a few biccies dunked in.

I hate most forms of exercise, but I have recently discovered a self-defence system called Krav Maga. It is a brilliantly effective self-defence class which is specific to modern day threatening situations. It is a simple method and so much fun.

I am very excited to be working with Jemma and I look forward to helping to grow the business further with her.

Please feel free to email me at lucy@orchardemploymentlaw.co.uk

Winter Blues and Don’ts

5 Tools to take your staff to the end of the year.

 

This autumn and winter you can keep your staff productive your and business running by following these steps.

 

Sickness

Coughs and colds are an inevitability this time of year and this can mean that businesses experience higher absence levels than normal. November is the perfect time to promote good hygiene in the workplace. You can do this by providing telephone wipes, keyboard wipes, sanitsers and sweet smelling soaps. This will help to reduce germs spreading and keep staff healthier for longer.

Now is the perfect time to review your sickness policy and remind employees who, how and when they should contact work. If you would like some help reviewing your existing sickness policies and procedure please fill in the contact form at www.orchardemploymentlaw.co.uk

 

Adverse Weather

Fallen trees, ice, frost and snow can cause havoc on public transport and our UK roads. You may find that staff are late to work or unable to come to work because of the winter weather. There is no obligation to pay staff who are not able to attend work but you may want to put things in place to allow your staff to maintain pay and for your business to continue to function. Consider allowing staff to arrive at work later, work from home or make up their hours on another occasion. If you do decide to pay staff who cannot attend work ensure that they are told that it is an act of goodwill and is not intended to be contractual.

Black Friday

Black Friday sales in the UK are becoming increasingly popular. You may find that employees attention to work and productivity levels drop as they try to find the best online bargains.

Managers are advised to ensure they have an up to date internet rules and usage policy. This policy should also be shared with staff. Whether you take a more relaxed approach to the use of computer devices or a strict approach be sure to be consistent so that you are not accused of discrimination.

Annual leave reminders

If your holiday year runs from January to December now is the perfect time to remind staff about their unused holiday allowance. You do not have to allow staff to roll holiday over into the next year unless there are exceptional circumstances such as maternity or illness.

You are also able to refuse holiday if it is not a convenient time for the business or if there are too many staff off.

That being said it is good to give staff time to rest so you should be reasonable when in receipt of holiday requests.

Many employers are unaware that they can impose annual leave. So if the business has a down period or your staff have unused holidays you can simply give them a day off (with notice of course).

Christmas

Christmas do’s and bonuses are a lovely way to boost morale, bring the team together and enjoy the end of the year but there are a few things that employers should bear in mind.

  • Not everyone celebrates Christmas so be mindful not to exclude or discriminate against any staff members.
  • Bonus can become contractual if they are given consistently year after year. Always remind staff that the Christmas bonus is not intended to be contractual.
  • Sometimes staff behaviour at Christmas parties is unacceptable. Remind staff that they are still expected to comply with harassment and disciplinary policies whilst they are having fun.

 

For HR advice or support and help with Employment Law please contact us at www.orchardemploymentlaw.co.uk or email info@orchardemplolymentlaw.co.uk

 

An employers guide to surviving the summer holidays

The summer holiday period can be difficult for UK employers as you try to juggle the need to keep business functioning whist addressing the need of employees who are parents.

In this blog you will find 6 practical tips on how to manage the 6 weeks summer holidays without grinding your business to a halt.

But first here is a brief overview of your staff rights and employer rights when it comes to holidays.

All employees are entitled to paid annual leave. UK employment law states that full time employees are allowed  minimum of 28 days paid holiday and part-time employees are the equivalent leave based on the number of hours they work.

From a HR perspective annual leave is a good thing. Your staff work better when they have regular breaks and it is good for morale. Although the employment law gives employees the right to have time off work employers can refuse annual leave if it is not a convenient time. This means that you can refuse annual leave if it is a busy period within the business or if there are other staff who are away

  1. Childminder ill

Sometimes even well planned childcare arrangements fail. The babysitter becomes ill or has a family emergency and this may mean your employee is unable to come to work. HR Law allows employees to take reasonable time off to take care of dependants during emergencies. In these circumstances the leave can be unpaid or you may allow the staff member to use their annual leave.

2. Think about being flexible

Employment does not always have to be 9 – 5. Allowing flexible working during the summer holidays may help you and your staff. Consider allowing employees to work condensed hours or take annual leave by the hour rather than by the day. This allows them to spend time with their children and continue working.

3.Home working

Another way of solving staff absences during the school holidays is to allow your staff to work from home. Many employers find that employees are more productive when they work at home and this can help employees who struggle with childcare. It is not a suitable solution for all types work or industry but it is certainly worth thinking about.

4.Handover

Never underestimate the importance of a good handover. A well documented list of work done and duties outstanding can lessen the burden of staff holidays on employers and staff who are still at work.  Consider informing customers in advance that their contact will be away. Make sure you know where to find keys and passwords so that business can continue to run as smoothly as possible.
5.Get cover

Temporary and agency staff come at a cost but they can be a great help to the workplace when there is a staff shortage. Hiring agency workers or students during the holiday period could be the answer you have been looking for.

6.Manage the workload

It is important not to burn out staff who are left behind during the holiday season. Try not to overload one person with all of  the work. Where possible spread the workload evenly to prevent the quality of work being compromised. This will also help to reduce staff illnesses and a feeling of resentment.

For advice and support with HR and Employment Law contact Orchard Employment Law at http://www.orchardemploymentlaw.co.uk

 

Holiday Pay Is Not Just About The Money

In 1926 Henry Ford introduced the 8 hour day and the 5 day working week because he realised that employees who rested were more productive. The same applies to employees and annual leave.

Some employers see holiday pay as another tax however, it is really important for employers to understand that holiday pay is not all about the money!

Holiday pay is about Health and Safety. It is there to encourage workers to take adequate rest breaks. This will in turn help your business by having healthier workers who are more productive because they are less tired and staff who make less mistakes because they are less tired.

The Law governing holiday pay in the UK is the Working Time Directive which was introduced in 1998. The Working Time Directive provides instructions and rules as to how many hours employees should work, when they should work and how much holiday they are entitled to.

Most employers now understand that full-time employees in the UK are entitled to a minimum of 28 days holiday within a year but there are still many employers that are making a BIG mistake.

That mistake is paying workers holiday pay in advance of the holiday being taken. This is prevalent with those employers who have staff on zero hour contracts. It is a practice known as ‘rolling up holiday pay’ where the worker will receive an enhanced rate of pay in lieu of holiday.

For example a worker who is over the age of 25 must receive a minimum of £7.50 per hour. A worker who is over the age of 25 receives an enhanced rate to include holiday pay will receive £8.41 per hour.

The problem with this is that the worker is less likely to take holiday because they will fear being without wages. In 2005 a Judge confirmed that this practice is unlawful and that holiday pay should be paid for  at the time when the employee actually takes holiday.

The recent case of British Gas v Lock 2016 reminded us that employers should not be doing anything which might discourage workers and employees from taking annual leave. It was also another example of how not paying holiday pay correctly can lead to a lengthy employment tribunal case.

So remember, holiday pay is not only about the money. It is a health and safety matter and it makes your workers more productive.

If you currently pay your staff an enhanced rate and you would like some assistance renegotiating the contract please contact Orchard Employment Law by visiting http://www.orchardemploymentlaw.co.uk/contact