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UCATT In Victory Over Sham Contracts

Construction union UCATT are hailing a recent employment tribunal decision as highly significant, in their campaign to ensure workers receive holiday pay.

The case involved two UCATT members from East Yorkshire who were employed as bricklayers by Redrow Homes (Yorkshire Ltd).

The written contracts described the men as “self-employed bricklayers” and the contract contained a clause, which in theory allowed the workers to send a substitute in their place.

However the Tribunal found the contract to be a sham as it “did not seriously reflect the relationship between the parties” and “it was never expected by either side, seriously or otherwise, that either of the Claimants would seek to provide a substitute or refuse the work offered”.

During the course of the Tribunal Redrow Homes admitted that the contract had been redrafted as a result of losing a Court of Appeal case on the issue of holiday pay in 2004.

The tribunal were highly critical of the company, stating: “Redrow in effect wanted workers but did not want to incur the obligation to pay holiday pay.”

Alan Ritchie, general secretary of UCATT, said: “Companies have got no hiding place they must accept that they have a duty to provide workers with basic rights such as paying holiday pay. This tribunal victory is significant as it serves as a warning to all companies that sham contracts and fake substitution clauses will not allow them to bypass their obligations.”