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Mencap wins 'unaffordable' overnight back pay appeal | Mencap wins 'unaffordable' overnight back pay appeal |
(about 2 hours later) | |
Care workers who had to stay overnight as part of their job will not be entitled to back pay at the minimum wage after a Court of Appeal ruling. | Care workers who had to stay overnight as part of their job will not be entitled to back pay at the minimum wage after a Court of Appeal ruling. |
The charity Mencap, who won the appeal, argued that a previous tribunal decision which compelled care providers to fund six years' back pay for overnight carers was unaffordable. | The charity Mencap, who won the appeal, argued that a previous tribunal decision which compelled care providers to fund six years' back pay for overnight carers was unaffordable. |
And it said smaller employers could be forced out of business by the decision. | And it said smaller employers could be forced out of business by the decision. |
But a union said workers should be paid what they were legally entitled to. | But a union said workers should be paid what they were legally entitled to. |
Care workers who provide care for people with serious learning disabilities overnight used to be paid a flat fee of around £30, reflecting the fact that they might be sleeping during some of their shifts. | Care workers who provide care for people with serious learning disabilities overnight used to be paid a flat fee of around £30, reflecting the fact that they might be sleeping during some of their shifts. |
But after employment tribunal rulings involving a Mencap support worker in the East Riding of Yorkshire, HM Revenue and Customs said they should be paid at least the minimum wage for every hour overnight, amounting to about £60. | |
Employers were told to fund £400 million of back pay but care providers, including Mencap, argued that this was unaffordable. | Employers were told to fund £400 million of back pay but care providers, including Mencap, argued that this was unaffordable. |
The Court of Appeal ruled today that care providers had no liability for back pay. | The Court of Appeal ruled today that care providers had no liability for back pay. |
'Mistake' | 'Mistake' |
But the union Unison is considering an appeal to the Supreme Court. | But the union Unison is considering an appeal to the Supreme Court. |
Dave Prentis, Unison general secretary, said the ruling was a "mistake" and that the blame should be "laid at the government's door". | Dave Prentis, Unison general secretary, said the ruling was a "mistake" and that the blame should be "laid at the government's door". |
"Ministers are so consumed by Brexit that they're ignoring huge problems around them. | "Ministers are so consumed by Brexit that they're ignoring huge problems around them. |
"Sleep-in shifts involve significant caring responsibilities, often for very vulnerable people." | "Sleep-in shifts involve significant caring responsibilities, often for very vulnerable people." |
But Lord Justice Underhill, sitting with two other senior judges in the Court of Appeal, said: "For the reasons which I have given I believe that sleepers-in... are to be characterised for the purpose of the regulations as available for work... rather than actually working... and so fall within the terms of the sleep-in exception. | But Lord Justice Underhill, sitting with two other senior judges in the Court of Appeal, said: "For the reasons which I have given I believe that sleepers-in... are to be characterised for the purpose of the regulations as available for work... rather than actually working... and so fall within the terms of the sleep-in exception. |
"The result is that the only time that counts for national minimum wage purposes is time when the worker is required to be awake for the purposes of working." | "The result is that the only time that counts for national minimum wage purposes is time when the worker is required to be awake for the purposes of working." |
'False expectations' | 'False expectations' |
However, most employers have now started paying the minimum wage to care workers who sleep overnight while working. | However, most employers have now started paying the minimum wage to care workers who sleep overnight while working. |
Mencap said it intended to continue to do so despite the court's decision. | Mencap said it intended to continue to do so despite the court's decision. |
Derek Lewis, chair of the Royal Mencap Society, said: "The prospect of having to make large unfunded back payments had threatened to bankrupt many providers, jeopardising the care of vulnerable people and the employment of their carers. | Derek Lewis, chair of the Royal Mencap Society, said: "The prospect of having to make large unfunded back payments had threatened to bankrupt many providers, jeopardising the care of vulnerable people and the employment of their carers. |
"Many hardworking care workers were given false expectations of an entitlement to back pay and they must be feeling very disappointed. | "Many hardworking care workers were given false expectations of an entitlement to back pay and they must be feeling very disappointed. |
"We did not want to bring this case." | "We did not want to bring this case." |