Overtime judgements could hit UK businesses
The results of three employment tribunals in regards to that way overtime pay should be calculated could cost UK businesses dearly, according to a new report by Abigail Halcarz, an employment lawyer at law firm SGH Martineau
Tuesday, 23 Sep 2014 09:29 GMT
The judgements regarding overtime pay could hit UK businesses of all sizes
In the article, Halcarz cites the results of three recent judgements that ruled that overtime should be included in the calculation of a staff member’s holiday pay, rather than the traditional method currently in place.
The suggestion comes shortly after the Office for National Statistics confirmed that the UK economy grew by more than 3.2 percent in the second quarter in comparison with the same period last year.
Despite this growth, Halcarz warns that businesses could be hit by the judgments as it could in turn lead to employees calling for extra pay from as far back as 1998.
“Three recent employment tribunals have held that overtime should be included in the calculation of an employee’s holiday pay,” Halcarz comments.
These decisions could have serious ramifications for UK businesses, which to all intents and purposes will have unknowingly underpaid staff for many years, potentially as far back as 1998, when the Working Time Regulations came into force”
“These decisions could have serious ramifications for UK businesses, which to all intents and purposes will have unknowingly underpaid staff for many years, potentially as far back as 1998, when the Working Time Regulations came into force.
“Given the significant cost implications, all of the employers appealed to the Employment Appeal Tribunal (EAT) with a judgement expected shortly.
“A recent calculation for one of our clients revealed a potential liability of around £5,000 per employee, which could spell disaster for businesses large and small as they look to invest in the future.”
