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Preparing a Written Statement of Main Terms and Conditions of Employment

Published October 2016

This guide gives general advice about preparing a written statement of Main Terms and Conditions of Employment and isto be read in conjunction with the Sample Written Statement of Main Terms and Conditions of Employment.

The law requires employers to give written statements to all employees who have been in their employment for at least one month. It helps to avoid misunderstanding and disputes about employees' particulars of employment.

Note : Item 12 Holiday Pay

Holiday Pay and Overtime Update: 4 November 2014

A key judgment has been made by the courts and this may mean that the rules employers and workers follow to calculate holiday pay may need to be updated.

On 04/11/2014 the Employment Appeal Tribunal handed down its judgment regarding the case of Bear Scotland Ltd v Fulton (and other joined cases). Before this ruling, voluntary overtime was not typically included when calculating a worker's rate of holiday pay.

The judgment has clarified that:

  • Workers should have voluntary and compulsory overtime taken into account when they are being paid annual leave.
  • Anybody making a claim must have had an underpayment for holiday pay that has taken place within three months of lodging an employment tribunal claim.
  • If a claim involves a series of underpayments, any claims for the earlier underpayments will fail if there has been a break of more than three months between such underpayments.

The judgment only applies to 4 weeks of a worker's annual leave - this is the basic amount of leave required under the EU Working Time Directive. It does not apply to the further 1.6 weeks of additional annual leave required under the UK Working Time Regulations, or to any further contractually enhanced annual leave allowances.

It is important for any employer or worker who believes they may in some way be affected by this judgment to keep in mind that the Employment Appeal Tribunal has given permission for this judgment to be appealed to the Court Of Appeal, which means that any final decision is likely to be some time away (at the time of writing, an appeal has not yet been lodged, but is expected to be).

In the meantime, employers, workers and trade unions are encouraged to discuss any concerns arising from this judgment with each other with a view to seeking agreement on any temporary measures or policy changes they feel may be necessary.

The Labour Relations Agency will continue monitoring this situation and will update this publication  accordingly.

Further information and help

If you require further information or help with this publication please contact us.

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