‘Rolled-up’ pay ruling should cut tribunal tollOn 19 Aug 2003 in Personnel Today The number of firms taken to tribunal over alleged unpaid holiday leave ispredicted to fall, following recent rulings by the Employment Appeal Tribunal(EAT) on ‘rolled-up’ holiday pay. Sharon Latham, an employment specialist with law firm Clarke Willmott,believes the EAT’s decision that rolled-up holiday pay can be permitted in manycases – provided it is clearly incorporated into contracts of employment – willreduce employment tribunal claims on the subject. Rolled-up holiday pay essentially means employees are pre-payed for holidaysby including an additional allowance in their hourly rate of pay. This meansthey do not receive payment for holidays as and when they take them, but mustinstead budget their wages accordingly to cover holiday leave. This payment method has been criticised by some workers’ groups as it isseen to reduce the incentive for employees to take holidays. Latham said confusion had arisen over the legality of rolled-up pay clausesin employment contracts since the introduction of the Working Time Regulationsin 1998, which entitles staff to four weeks paid holiday. She urged employers using rolled-up holiday pay to make it very clear tostaff that holiday pay is incorporated in their hourly wages. “Make sure your staff understand that their wages are slightly higherto accommodate for holiday pay and that they realise this additional moneyshould be put aside to cover time off for holidays,” said Latham. Related posts:No related photos. Previous Article Next Article Comments are closed.
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RelatedOlympique Lyon vs FC LorientJune 30, 2017Similar postF1: Ferrari Sign Sainz & McLaren Confirm Ricciardo For 2021 SeasonMay 14, 2020In “Formula One”McLaren Still Chasing Red BullMay 22, 2018In “Formula One” McLaren are expected to officially confirm the switch from Honda to Renault engines this weekend at the Singapore Grand Prix after three ill-fated years without a podium finish with Honda power.The new McLaren-Renault partnership is expected to convince two-time world champion, Fernando Alonso, to stay on for the 2018 season. Alonso had publicly stated his uncertainty at remaining with the team if nothing was done about the Honda engine.Honda remains in Formula one as they will now supply Toro Rosso. Carlos Sainz is widely expected to move on loan to Renault as part of an agreement that allowed Renault partner with McLaren but it still looks unlikely that he will be replacing under-fire British driver, Jolyon Palmer, who has failed to record a single point in the 2017 season.McLaren chiefs have repeatedly said they believe their car is one of the best in terms of chassis design and that they would be scoring podium finishes if they had an engine like Renault’s, also used by Red Bull this season. That thought is completely theoretical at the moment but 2018 will be their chance to prove their claims.While the McLaren-Renault deal is expected to be for an initial period of three years, Fernando Alonso will be looking out for just a year’s extension as there are expected to be major vacancies at Mercedes, Ferrari and Red Bull at the end of next season.