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Is what our employer doing legal?

Category: Law & Legal

JohnnyJohnny


Since the recession our contract was changed, voted in by the Union. Are working week is 34 hrs, but if work demand picks up we work what is called extended hrs. Currently we have been working 40 hrs a week but being payed 34 hrs. The extra 6 hrs are being banked as time owed, come the end of the year the company can transfer 34 hrs over to the next year but any more they have to pay us off or give us the time off from work. As it stands the company owes me 62 banked hrs, its the same for the other employees too. The company is saving thousands by us working for nothing. Where does this stand legally, since the company is making interest of our money and what about tax laws?. Would appreciate answers from those who know about this kinda thing. Thanks.

If its too confusing i could try and re-explain the way the system works.

strainers555
strainers555

They either need to give you lue time or pay you for hours worked, what i would do is go to a trade union and ask them or go to citizens advice bureau, as im pretty sure with "banked hours" they need to pay you/let you take the hours off within a certain period, but double check. If i was you i would be pis***!!

fengirl2
fengirl2

If you are in the UK, then this is legal. You have been offered a new contract and accepted it and are working to it. I should think that the company cannot afford to pay you for the extra hours, so the money is not there in the first place, let alone accruing interest. There are no tax implications as you are not receiving extra pay. Lesson to be learnt here about not just accepting what the union has negotiated.

Doctor Deth
Doctor Deth

If they eventually have to pay you for that time or give you paid time off, then they aren't saving anything in the long run

if the union approved it - you have nothing to complain about

Cala
Cala

Any change to your pay or contracted hours needs to be agreed by the workers or their representative - in this case your union agreed it. What you are doing is similar, in theory, to working flex-time: you bank extra hours and use them to get extra time off. There's nothing illegal in that - you are actually getting something in return for the hours that you work. It does mean that the company don't have to pay you for all the hours that you do work, and they don't have to pay overtime rates, but you get time off in lieu of pay and the union obviously decided that this was an acceptable deal. If the union hadn't agreed to this, then the chances are that redundancies would have to have been made and the remaining workers then each have to do the work of 2 people.


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