Archive for the 'Working Time Regulations' Category

Sickness At The Heart of Europe (1)

Long term sick absentees from work are a problem. It’s a problem for them, because they’re sat at home generally stressed out about the fact they’ve a job they haven’t seen for months or years - a tie that sometimes can prevent recovery. It’s a problem for the state, which is contributing to their SSP and subsequent incapacity benefit. It’s a problem for the employer, who would rather like to sever the relationship, appoint someone else permanently to the post, and get on with it.

So imagine the ire of employers when it was suggested a couple of years ago that if you were on the sick then you should still get all your holiday pay each year. Example - Bob goes off sick in December 2005. His holiday year is January to December. In November 2006 he rings up his boss and asks to take his WTR-guaranteed 4.8 weeks’ holiday for the last 4.8 weeks of the year and be paid for them. The employer is cross, as if this were correct he’d have to pay Bob holiday pay for a year when he didn’t derive any benefit from employing Bob whatsoever. A similar example would be if Bob gave his notice towards the end of 2006, and asked to be paid in lieu of his untaken holiday.

The Court of Appeal all the way back in 2005 decided this was ridiculous, and in the case of Ainsworth brokered a kind of compromise whereby if anyone didn’t work at all during a holiday year, then they weren’t a worker for the purposes of the Working Time Regs and didn’t accrue an entitlement to annual leave. This remains the domestic position for the moment, and current advice to employers is that even if Bob just comes in for one week of the year then he accrues leave for the rest of the year just as if he’d been at work.

The whole mess (now renamed Stringer) was referred to the ECJ by the House of Lords, and we have now had the opinion of the Advocate General. The AG’s report is not binding, but acts as an expert opinion that is usually followed by the whole court.

In plain English, it provides:

  • You accrue leave when you’re off sick;
  • But you can’t take it when you’re off sick;
  • But you can get a payment in lieu of holiday when you leave.

At least, I think that’s what it means. Daniel Barnett has described the opinion as “arid - verging on incomprehensible” and certainly it makes a typical UK judgment (even a Scottish one) look like the paragon of clarity. I’m no expert on the workings of the European system, but it would appear that all of the parties’ submissions have been translated into German for the AG , and his opinion then written in German and translated into English. Honestly, I’m not being all Daily Mail about this, but surely an AG considering a UK reference ought to have the English fluency to deal with submissions without recourse to translation, and then write his opinion in English. This is simply a practical consideration: the Chinese whispers effect of translation back and forth surely comes with risks of imprecision or missing the point; it certainly makes it a nightmare to read.

UK Holiday Entitlements

So let’s get started! The new increase in holiday entitlements has caused much confusion. It’s bank holidays that cause the difficulty you see. Calling them bank holidays, public holidays, and worst of all statutory holidays gives people the understandable impression that they’re actually entitled to take them off. Not so. There is actually no legal entitlement to take any public holiday off at all. All the law says is that you’re entitled to so many paid days off in a year. Up until this month, it was 20. That just mean you had to be given 20 paid days off. Employers could count public holidays, Christmas day, the July shutdown, or whatever else into the total. So you get 20 days off plus public holidays? Well, lucky you, because your employer didn’t have to give it to you. In fact, they could have made you work on those days if they wanted.

Understandably, our entitlement to public holidays was a major campaigning point , and thus the government is increasing the minimum entitlement by eight days, to represent the eight public holidays. It’s being phased in, with an increase to 24 days from 1st October this year, and to 28 in 2009.

So you see why people get confused. From the start of this month I’ve received at least two dozen telephone calls like this:

“My employees get 20 days holiday, they reckon they’re entitled to
24 now!”

“Do you give them bank holidays on top of that?”

“Of course – I thought you had to!”

“Don’t worry, you’re fine as you are.”

Of course, I then go on to ask them about staff who work part time or have irregular hours, but if this applies to you, then you can work it out for yourself: http://snipurl.com/1s2cm

Actually, I realise I’m being lazy, so I’ll tell you. If you’re part time, but you work a regular number of days per week (e.g. three) then it’s easy. 24 days per year equals 4.8 weeks, so you just multiply your 3 days by 4.8 to get 14.5 days’ entitlement. You always round up to the nearest half day. In 2009 when it goes up to 28 days, this equals 5.6 weeks. If someone works completely irregular shifts, then it’s best to appoach it as a percentage - for every hour they work, they accrue 10.2% holiday. So, once they’ve worked 100 hours they’re entitled to 10 hours and twenty minutes paid holiday. No-one ever said it was going to be simple. For more examples, see here: http://www.berr.gov.uk/employment/holidays/faq/index.html

So how do we do for holiday in the UK? Employers I speak to vary in their views - I think most reckon the current leave entitlements to be about right. Some of course say it cripples their business. If you (or your employer) starts to fall into this frame of mind, then remember that even when the full 28 days comes in, we’ll still be joint bottom of EU countries. Workers in Germany get a whopping 39 days off each year, and only the Netherlands offer as little as we do. More here: http://news.independent.co.uk/uk/this_britain/article2859082.ece

So if you’re one of the significant minority who’ve enjoyed an increase, then I hope you have a good time wherever you’re going!