No Pay in Lieu of Holiday!
Jul 19, 2006
Author: Patricia Morrill

A surprisingly large number of people do not claim their annual leave/holiday.

Some employers pay them extra wages in lieu of this but the European Court has not heavily stamped down on this practice.

Trish Morrill says:

Case law in Scotland had already banned this practice but in the rest of the UK it was legal. A group of shift workers who demanded the right to payment during holidays instead of notional extra hourly pay took their case to the European Court of Justice . The workers won as the current system was held to breach the EU working time directive. The court said: `The entitlement of every worker to paid annual leave is an important principle of community social law from which there can be no derogation [exception]. Holiday pay is intended to enable the worker actually to take the leave to which he is entitled.`

The construction, education and manufacturing sectors, where shift work and short term contracts are popular, are likely to be affected the most.

If you would like advice on how this may affect you then contact us for further information. Call Trish Morrill on01494 521301.