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19th August 2004, Page 34
19th August 2004
Page 34
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Last year the Working Time Regulations introduced a minimum four weeks' paid holiday but some employers got round the new law by including bank holidays. Now that loophole is to close. Patric Cunnane reports.

During the long, hazy days of August. when traffic is relatively light and factories and offices are semi-deserted, it seems that the whole country is on holiday, enjoying a relaxing sojourn on beaches here or abroad.

But in reality some workers have much more time off than others the transport sector is noted for its stinginess in this arealleTransport & General Workers Union says most hauliers award three to four weeks' holiday a year.

Given that the Working Time Regulations 1998 insist on a minimum of four paid weeks, this is not generous. However, Ruth Pott, head of employment at the Road Haulage Associa tion,says most of her members now award four weeks' holiday plus eight paid bank holidays; others meeting the requirements of the regulations by offering three weeks' plus bank holidays. "Custom and practice is to pay for bank holidays," she says.

Employers can include bank holidays as part of the holiday package because the only workers with entitlement to paid time off on bank holidays are bank workers themselves. But a T&G spokesman says that could change if Labour wins a third term next year.

-The election manifesto will include a pledge that the minimum entitlement must be four weeks plus bank holidays,he says, explaining that the move is designed to end the practice of employers exploiting a loophole in the existing law: "However,reasonable employers do not do this sort of thing and 24/7 industries will award premium pay and extra time off for night work."

For anyone working a regular live-day week, calculating holiday pay is pretty straightforward. It becomes more complicated once bonus payments, commission and overtime become involved.

Holiday pay is meant to be calculated on normal weekly earnings rather than basic pay. However, the law as it stands drives a coach and horses through this concept. UK law does not require overtime to feature as part of `normal earnings'; the employer can decide whether to include commission.

Under the Working Time Regulations holiday must be taken in the year in which it is accrued and employers cannot offer payment in lieu, unless the employee is leaving and has not taken his annual entitlement.

New starters accrue holiday entitlement on a monthly basis. In the first year a worker will get one twelfth of the statutory four weeks' annual leave for each month worked.To avoid this producing absurd calculations the entitlement can be rounded up to half a day, so a worker entitled to three and one-third days' holiday can take three and a half days.

The regulations even specify holiday notice periods for this first year. An employee must give at least twice the length of time in notice that he or she will be away on holiday. Employers can ask employees to accept alternative dates but must give notice at least as long as the holiday period.

Full-time and part-time employees, fixedterm employees and workers are all entitled to paid holidays. Permanent employees have a contract of employment while casual workers have a contract for services, At present agency workers are not entitled to holidays or the other favourable terms enjoyed by employees and workers. The Eu ropean Commission has proposed that agency workers should have the same rights after six weeks' employment but the UK government is opposing this, suggesting a longer period of perhaps a year. •


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