Employment status, historic holiday pay and parental leave
05 December 2018
- In November 2017 the Court of Justice of the European Union (CJEU) ruled that workers who have not taken paid leave because they were wrongly classified as self-employed contractors can claim for accrued holiday pay
- The CJEU ruled there was no time bar to Mr King’s holiday pay claims
- The case was referred to the Court of Appeal to see if the Working Time Regulations applied and to assess the level of compensation
- A settlement was reached between the two parties before the Court of Appeal hearing
Holiday pay saga comes to an unhelpful end: King v The Sash Window Company Limited – this famous case in relation to employment status and holiday pay was due to be heard by the Court of Appeal on the 21st November 2018. However, we understand this case was settled prior to the hearing which leaves employers in the dark about further guidance regarding the calculation of historical holiday pay for workers who had been wrongly classified as self-employed contractors.
Unfortunately, we do not know any details regarding the settlement. However, this does not change the fact that the CJEU determined that businesses who wrongly determine employment status – categorising workers or employees as self-employed – are at risk of claims for unpaid annual leave going back an undefined time.
To view our previous news on King’s holiday pay case click here.
Parental Leave and Pay Arrangements (Publication) Bill 2017-19 – a second reading of the Bill was due to take place at the end of November. However, this has been rescheduled to take place on Friday 25 January 2019. Do keep an eye on our website for future updates.