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What is a Zero Hours Contract?

Holiday Pay Tribunal Ruling

There has been a victory for workers in a landmark case at the Employment Appeal Tribunal as it has been decided that overtime will be included in holiday pay. In other words, if people have worked overtime then they may be able to include it when it comes to calculating how much holiday pay they are entitled to.

This means that an employee who is on a part time contract but has actually worked the same number of hours as a full time colleague will be paid the same amount as their full time counterpart.

Significantly, workers will also be able to make backdated claims albeit only for a limited period.

According to BBC statistics, of the 30.8 million people who work in the UK, five million do voluntary or compulsory overtime; 23% of men in full time work currently do overtime hours and 12% of women.

Although the ruling may yet be referred to the Court of Appeal and thus take many years to come through, the potential new law has already aroused a lot of interest particularly from companies in which staff are regularly required to complete overtime, with mixed opinions of the changes being expressed.

Admirers of the proposals argue that it will force employers to pay close attention to the working hours of their employees and provide them with the holiday that they deserve.

Critics were initially concerned that these new rules would develop an uncontrolled number of back payments. However, this has been acknowledged with the suggestion that backdated claims have restrictions placed on them; employees cannot claim more than 3 months after the last incorrect payment.

If you would like to find out more information about these developments and how they might affect your company, please feel free to contact us on 01159 985245.