The agreement on labour rules is concluded between employers` representatives and trade unions in the construction industry and sets the agreed wage rates for the different levels of training and crafts, as well as leave rights and social benefits. It also covers other topics such as working hours and health, safety and well-being. ACAS has published a guide on the calculation of vacation pay, which can be found at: – On 4 November 2014, the Employment Appeal Tribunal in London delivered a judgment in the Case of Bear Scotland & Ors -v- Fulton & Ors concerning the calculation of vacation pay under the provisions of the European Working Time Directive. For example, an operations employee employed for 20 weeks would have earned a total of 20 x 0.558 = 11.16 days of paid leave, of which 20 x 0.404 = 8.08 days are payable in “euro” days. The total amount of vacation allowance will continue to accrue at 0.558 days per week of service. That is, 29 days a year. The “Euro” element of it will be charged up to 0.404 days per week of the service. That is, 21 days under the ICJC agreement. In general, employers treat the first 20 days of vacation each year as “euro” days and the rest in the traditional way. However, for reasons of ease of administration and transparency, the ICJC has agreed to treat the 21 days of industrial holidays as euro days and public holidays in the traditional way. The decision only applied to the 4 weeks (20 days) of entitlement to paid annual leave (now called euro days) under the EU Directive and not to the additional leave of 1.6 weeks (8 days) under the provisions of the UK Working Time Regulation or the provisions on additional leave. As a result of this decision, it is necessary to amend the calculation of vacation pay for certain holidays in accordance with the provisions of the ICJC Agreement on Labour Rules to include wr.4 average overtime (more than 12 full weeks) and travel allowances taxable under WR5.1.
An ir 2015.06 announcement has been published containing details on the revision of the agreement on working rules. It is recognised that after the general election, the UK Government will amend the provisions of the UK Working Time Regulation and, as such, the agreed amendments could be amended. .