We’re sure (fairly sure!) that all employers are aware that their employees are entitled to paid holidays, though we often find that they are not aware of how much holiday, or how the holiday taken should be paid.
However, there is often a lack of awareness that all ‘workers’ are entitled to paid holiday. The term ‘workers’ includes employees, but it also includes individuals who work on a casual basis or who provide work personally without the ability to provide a substitute if they are personally unavailable. This means that it can often also include people who are self-employed.
It is so important to be clear about holiday entitlement from the outset when using workers who are not employees. The case of King v The Sash Window Workshop Ltd has been going through the various courts for a long time while decisions are appealed. The most recent view emerging from the case is that employers are bound to provide an ‘adequate facility’ for workers to exercise the right to paid annual leave’ and that if they don’t do this the worker may be entitled to claim holiday pay right back to when they commenced working for the organisation. This will now be considered by the full European Court of Justice which is not bound to follow this view, but it really does highlight the need for all organisations to look very carefully at the contracts of all the people who work for them, whether employed or not.
Please do contact us if you would like any help with this.