Landmark Holiday Pay Victory Confirmed

Construction union UCATT have finally had victory confirmed in a two year battle over holiday pay and sham contracts, with housing giant Redrow.

UCATT’s victory was confirmed this week when the Court of Appeal refused Redrow leave to appeal against a ruling made at an Employment Appeals Tribunal last October.

The case involved two bricklayers from East Yorkshire who signed contracts describing them as “self-employed”. UCATT were able to prove that the contracts were a sham as although they contained substitution clauses, there was no serious possibility of other people doing the work provided or for the work to be refused.

The victory is highly significant and could lead to thousands of other construction workers being able to claim holiday pay. The use of similar substitution clauses, to attempt to show that workers are self-employed, is a widespread practice especially among housebuilders.

Alan Ritchie, General Secretary of UCATT, said: “This is a massive victory it should pave the way for thousands of other construction workers to claim the holiday pay they are entitled to receive. In virtually every other industry the payment of holiday pay is not an issue but in construction companies go to extraordinary lengths to try to deny workers the most basic of benefits.”

The case began in 2007 where an Employment Tribunal ruled in the union’s favour. Following a nine month delay the Employment Appeals Tribunal upheld the original decision. Despite having lost twice Redrow tried to take the matter to the Court of Appeal but were refused leave to appeal.

The case is particularly embarrassing for Redrow because in 2004 they lost a very similar case at the Court of Appeal. Following that case Redrow redrafted their contracts for sub-contractors in order to attempt to continue avoiding paying holiday pay to workers, who they claimed were legitimately self-employed.

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The claimants were each seeking £2,293.20 in holiday pay.