22 March 2021
In a landmark case, held on 19 March 2021, the Supreme Court ruled that care workers who fulfil ‘sleep-in’ shifts are not entitled to be paid the National Minimum Wage (NMW) for any hours that they are not awake and not actually performing a specific activity. The latest ruling puts an end to a legal battle that has spanned four years and related to two care workers employed by the charity, Mencap. One of the claimants in question was Mrs. Tomlinson-Blake, who was a support worker for adults that were classed as being vulnerable. Her job involved carrying out ‘sleep-in’ shifts between the hours of 10pm – 7 am. The other claimant was Mr. Shannon, a carer, who, as part of his role, had to stay overnight at a residential care home based in Surrey. Cases held back in 2018, which were both dismissed by the Employment Tribunal and Court of Appeal, saw Mrs. Tomlinson-Blake assert that her flat-rate pay, plus an hour’s pay, for ‘sleep-in shifts’ should instead be paid at standard NMW rates. Mr. Shannon also fought for an hourly pay rate as opposed to a flat rate of pay for the duration of time in which he was required to complete ‘sleep-in’ shifts.
The stance taken by the Supreme Court is that care workers are only eligible for the NMW hourly rate on ‘sleep-in’ shifts, for any time that they are actually awake for the purposes of working.
One of the implications of the judgement is that neither Mrs. Tomlinson-Blake or Mr. Shannon are able to submit claims for any backdated pay. If the outcome of the case had been different, and payment of the NMW would have been made mandatory for all hours spent on ‘sleep-in’ shifts, then this could have resulted in impacted employers having to pay out more than £400 million in back-dated wages.
Back to Contents
LPC consultation: Recommendations on the NLW and NMW rates for April 2022 25 March 2021
The Low Pay Commission (LPC) has published its latest consultation, which seeks evidence on the impacts of the National Living Wage (NLW) and National Minimum Wage (NMW), to help shape its recommendations to Government on the rates that should apply from April 2022.
The consultation opened on 24 March 2021 and will close at 11:45 pm on 18 June 2021.
The recommendations for the NLW from April 2022 are directed by the Government’s targets of the NLW amounting to two-thirds of median earnings by 2024. The intention for the other NMW rates is to increase them as much as possible without subsequently unintentionally negatively impacting employment. This is the LPC’s standard approach to NMW rates year-on-year.
The consultation document asks for responses relating to:
• The affordability and impacts of a proposed increase to the NLW, meaning it will sit at £9.42 per hour from April 2022. This is the LPC’s current intended goal, but the range could vary from 7 pence either above or below this figure • Feedback and opinions on the NLW pathway to 2024. It is anticipated that, by April 2024, the NLW rate will reach £10.33 with a potential range of 23 pence above or below this figure. Additionally, it is intended that the age threshold for the NLW will decrease from 23 and above to 21 and over, within the same timeframes, at the latest • The LPC also wants to discuss the impacts of the most recent uplifts to the NLW and other rates, and any effects on employment and hours, pay and benefits, productivity, prices and profits Obviously, a key area for consideration for this year’s consultation will relate to the economic turbulence posed by coronavirus, and the Government support measures put in place to support both individuals and businesses through the pandemic.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
Page 461 of 590
Made with FlippingBook - Online magazine maker