Cable seeks a way round holiday pay ruling Written By: Ian Hernon Published: November 15, 2014 Last modified: November 11, 2014 Business Secretary Vince Cable is aiming to reverse a ground-breaking Employment Appeal Tribunal ruling to force all employers in Britain to include overtime pay when calculating workers’ holiday pay. The Liberal Democrat Cabinet minister has set up a task force – which will exclude the unions – after complaints from manufacturing bosses and the CBI. Mr Cable said that the aim was “to assess the possible impact of the ruling”, and that the probe will be carried out by a selection of government departments and business representative groups. His review was sparked by the victory of 16 Unite members, a mix of electricians, scaffolders and semi-skilled operatives, who worked on a project at the West Burton power station site in Nottinghamshire until it came to an end in 2012. During that time, they were consistently required to work overtime and received payments for travel time. Payments for that work were not included in holiday pay, and the workers were paid around half pay when on holiday. The case brought by the union against Amec and Hertel could lead to pay outs worth thousands of pounds and paves the way for similar cases after the Employment Appeal Tribunal ruled that people obliged to work overtime should have overtime pay and other bonuses and allowances included in their holiday pay. The Tribunal ruling in turn followed an appeal by Amec and Hertel over an earlier decision in February which found in favour of the workers and recent decisions by the European Court that workers should receive normal pay when on holiday. Unite executive director for legal, membership and affiliated services Howard Beckett said: “Up until now, some workers who are required to do overtime have been penalised for taking the time off they are entitled to. This ruling not only secures justice for our members who were short-changed, but means employers have got to get their house in order. “Employers will now have to include overtime in calculating holiday pay, and those that don’t should be under no illusion that Unite will fight to ensure that our members receive their full entitlement.” Paul Kenny, general secretary of the GMB, said the judgment “clarifies that voluntary overtime and time spent waiting for emergency call outs must be included in holiday pay calculations. “No doubt certain elements and interest will condemn the European Directive upon which this court decision is based that will give workers in the UK the extra pay they have been denied by employers and politicians for years. TUC general secretary Frances O’Grady said: “Failing to count overtime when calculating holiday pay is quite simply wrong. This ruling marks a victory for people who work long and hard to make a living, and who deserve to be properly paid when they take their well-earned leave. “Scaremongering about the possible impact of this ruling is irresponsible. British business is far more robust than some of its spokespeople would admit. It’s worth remembering that in 1999 a change in the law meant that six million people gained more holiday entitlements, and businesses easily absorbed the increase and employment continued to rise.” Manufacturing bosses’ group EEF head of employment policy Tim Thomas called the ruling “a blow for employers”, adding: “It’s clear that many businesses will now be left facing difficult choices, and there is a real danger that this ruling could ultimately hit jobs, pay and future investment. This is why ministers across government must act now to protect employers from the fallout.” Confederation of British Industry director-general John Cridland joined the calls for state intervention, saying: “This is a real blow to UK businesses now facing the prospect of punitive costs potentially running into billions of pounds – and not all will survive, which could mean significant job losses.” About Ian Hernon Ian Hernon is Deputy Editor of Tribune
Posted on: Sun, 23 Nov 2014 14:44:25 +0000
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