Misinterpretation of the Working Time Directive by the UK since 1998… potential and imminent changes in Family Friendly Policies – is it time to raid the piggy bank?

In our January newsletter we reported that the UK had been incorrectly interpreting the Working Time Directive –  paying basic rate of pay only to employees when they are on holiday – rather than also taking into account regular additional payments such as over-time and commission.  

Since this time B2P has been canvassing views – here are some of your comments:-

  • Check your employment contracts are these payments guaranteed?
  • Would it be prudent to say ‘do nothing’ at the moment? Or by doing so this implies you know that you should be taking some action?
  • Start calculating holiday pay and include overtime and commission over a 12 week – or 52 week period.
  • I’m not doing anything it’s too confusing…is it law yet?
  • Start thinking about damage limitation.
  • What other payments should we consider?  All overtime (not just compulsory), on-call and commission?
  • What happens if an employee has received a large bonus in the previous 12 weeks does this need to be included?
  • How has this happened? Is it down to those who drafted the Regulations, the Judges, or the Tribunals?
  • Could companies look for other ways to mitigate their exposure? For example; using agency resource rather than paying permanent employees overtime, or perhaps reducing the amount paid for overtime from double or time-and-a-half to basic pay only?

What will you do?  The general advice seems to be doing nothing is not an option and potentially leaves the door open for employee claims for unauthorised deductions of wages.

Labour also reported this week that should they get into power at the next election they will look to increase Parental Leave from the current 2 weeks to 4 weeks and also increase Paternity Pay.

Next month we see further increases to the new rates for Statutory Sick Pay, Statutory Maternity/Adoption Pay, Statutory Paternity Pay and Statutory Shared Parental Pay. 

  • How are all these increases affecting your Company? 
  • Is it a time bomb waiting to go off?  
  • Is your piggy bank about to explode?   

Share your comments here.