Overtime / holiday pay

Could be backdated to 1998

It applies to people who get paid for working overtime.

If your usual weekly pay was made up to include £100 overtime. Then when you took you holiday, you took a £100 drop for that week.

It's been a long time coming and they're not home and dry yet.
It's amazing that the unions have allowed this to go on for so long without so much as a peep from them.
Have they been asleep, or are their leaders simply bone idle or is something else the reason why it's been neglected for so long?

If it’s voluntary overtime I don’t see how that’s right. That will just result in less overtime being available to people who want it or some other reduction in staff costs elsewhere to counter act it.

Dr C - I understand.

This is going to be a disaster for a lot of employers

It's making overtime more expensive.

A lot of firms are run on overtime simply because they can increase production with the same numbers of staff, and not incur any more overheads. Except for overtime pay.

Overtime is cheaper and more efficient than employing more people.
If the work drops off they simply stop the overtime.
That way they don't have to have people standing about or lay them off and then have to re recruit when the work comes back.
.

It will be a heavy blow to many firms if it goes through.

Staff are just a unit cost in any business just like anything else, therefore if the advocates think this is just going to be a win win for them they are deluded.
The added cost on holiday pay will just be recouped by one or more of the following examples :-
A reduction in wages in real terms via no pay rises (that’s been going on for over 10 years though thanks to open door immigration)
A reduction in pension contributions from the employer
A reduction in any bonuses
A reduction in availability of over time.

I.e. what they’ll gain in one hand they’ll lose in another.

alot of these people wouldnt have been in pension schemes,dont get bonus,s and work overtime because the job needs it ,its not a freebie or gesture from the firm,and as stated it will cost the firm more to take on new employees to do the work,
the bit i dont understand is they say they dont no if those people who volunteer to work will gain,under the working directives i thought all overtime was voluntery

Allowing this to be backdated seems like an efficient way of driving already struggling companies under.
Also people who now want to do overtime are obviously going to feel a downward pressure from management to limit it to avoid future liabilities, that might even be for periods when companies may be less busy and no overtime would be done anyway.
Seems a bit mad and likely to have unintended (though predictable) negative consequences.

I agree that backdating these payments would be ridiculous, although my missus would probably benefit. (John Lewis have reportedly put £40m aside.)

Could open up a can of worms, imo. What about sales people who get a meagre basic wage and rely on commission? Or a waiter who relies on tips?

She doesn't work for John Lewis. That was just an aside

People who don't get paid for overtime won't be affected.

In so called professional scenarios you are paid to do a job and expected to spend whatever time is required to do it.

wheres this ridiculous assumption that overtime is a freebie,as already stated taking into account the paperwork, training,manning when work drys up etc its far cheaper for companies to pay overtime,they arnt going to turn work down to save a few bob on holiday pay,thought i read it will only be backpayed for 3 months

at its worst firms have been profiteering by robbing their employees, another good day for the claiment companies,ppi all over again

Before they legislated on holiday pay, workers could rack up thousands of pounds in overtime, yet when they drew their holiday pay they could be getting even less than a basic weeks wages if they'd lost any time during the year.

Holiday credits used to be put to one side every week, and if you put in less than a basic day at any time, this meant that regardless of the amount of overtime you did that week your holiday credits would be short.

Then employers rubbed extra salt into the wound by not paying the employee overtime rates until they'd got their basic weekly hours in.

Employers used to got away with murder, it's no wonder worker were always going out on strike.

this is the tip of the iceberg,the stunts currently been pulled by these umberella coupons defy believe,lads in our place recently took 5 grand a man of them on the court steps regarding NI payments and bank holiday payments,
they had to sign gagging agreements,so the other works are having to go through the same process to get their dues

When the holiday credit system was scrapped, and employers had to pay workers the same rate as their weekly wage for holidays.
It meant that workers could pick up a full weeks money for their holiday pay, while picking up a short week for the week before their holidays if they'd lost any time.

Bosses hated that.

There was clearly no need for overtime if the employee was on holiday.

Dr Crippen
04 Nov 14 19:21   
Then employers rubbed extra salt into the wound by not paying the employee overtime rates until they'd got their basic weekly hours in.

That's the way it should be.

I worked with people, mostly single blokes, who had two days off 'sick' then worked 3 x 12 hour shifts. They got 24 hours of standard pay plus 12 hours at time and a half, equalling 54 hours pay.

If an employee who had no time off worked 54 hours, he'd get 40 hours flat rate and 14 hours at time and a half, equalling 61 hours pay.   

In effect, at Londons living wage of £8.80p an hour, and £13.20p for overtime, the lazy bastard earns 32p an hour more than the conscientious man, for the same  job, which is wrong.

As for backdated pay, the Unite rep on breakfast televison said nobody can go back further than 3 months.

That's all we need, instead of the PPI phone calls we get the have you worked overtime calls.
Having just dropped down from management to hourly paid, I'm loving the overtime 30 mins here 45 mins there it soon adds up.
More money less pressure and the company love you for it, don't ever want to be salaried again.

call me a taxi
04 Nov 14 22:37
Joined:
02 Oct 03
| Topic/replies: 6,237 | Blogger: call me a taxi's blog

As for backdated pay, the Unite rep on breakfast televison said nobody can go back further than 3 months.



My understanding is that you can go back further than that. The ruling is that claims can be backdated until you get to a point where there is a three month gap between holidays.

I may have got it wrong then, I was reading from BBC subtitles.

A year was mentioned in the news report I read.

The company I worked for cut out most of it's 6th day working by employing more staff.
Staff that were affected were given a pay rise to compensate them for the loss of o/t.

Was definitely a year as the unions wanted to go back to when the legislation first appeared which I think was approx. 1998 but the courts refused and made it 1 year only.