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Archive: Nov 2014

Forest goes 020

You talked, we listened.

We had a few requests from our clients and employees to add an 020 number. Our existing number (0845 459 4099) is free to call from landlines but most mobile providers charge to call these numbers – even though 0845 is supposed to be a free number!

So, to solve the problem we’ve added a new number – now you have two choices to reach us:

0845 459 4099

0203 478 4017

We look forward to your call!

Holiday pay, recruiters and umbrellas

There has been much confusion and wringing of hands already over the prospect of retrospective holiday pay claims. Employers and particularly recruiters are concerned, and some with good reason. Yesterday, the president of the employment appeal tribunal (EAT) handed down judgment in AMEC group ltd v law and related appeals, which are some of the holiday pay test cases. To cut through all the legal jargon is always a difficult job, but let’s take a run at it.

The judgement was around ‘non-guaranteed’ overtime. This is where the employer isn’t obliged to offer overtime, but where it does, the employee is obliged to perform it and is duly paid for it. Up until now, in the vast majority of UK workplaces you (as the worker) would not accrue holiday against that overtime – your holiday has only been calculated on your basic hours / salary.

The new decision means that employees could have retrospective claims over what would now be classed as ‘unpaid’ holiday pay for that overtime worked. As always, forest is on hand to guide and advise our clients.

Where payments to our umbrella employees are concerned, our approach has always been to calculate holiday pay against all work completed – regardless of whether that’s made up of regular hours, overtime, or commission. Essentially this means our approach several years ago future-proofed us, because every hour worked accrues holiday.

The next piece of the puzzle that will cause concern is commission, and whether holiday pay should be calculated on that. We can expect to see a judgement on that in Q1 of 2015, so watch this space. It may be the case that holiday needs to be accrued against commission payments. Again, this hasn’t been the norm in the majority of UK workplaces, so if that ruling comes down – the vast majority of employers (who regularly pay commission) could find themselves  on the wrong side of the law, and with retrospective claims on the table.

With umbrella payments, as above with the overtime issue, forest has your concerns covered. Contact an expert today to learn more about why our clients choose us, and how we’ll help future-proof your business.

 

The information contained in this article is correct at the date of publishing.

 

 

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