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United Kingdom Employment Appeal Tribunal |
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You are here: BAILII >> Databases >> United Kingdom Employment Appeal Tribunal >> South Manchester Abbeyfield Society Ltd v Hopkins & Anor [2010] UKEAT 0079_10_3011 (30 November 2010) URL: http://www.bailii.org/uk/cases/UKEAT/2010/0079_10_3011.html Cite as: [2010] UKEAT 79_10_3011, [2011] ICR 254, [2010] UKEAT 0079_10_3011, [2011] IRLR 300 |
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At the Tribunal | |
On 14 June 2010 | |
Before
HIS HONOUR JUDGE REID QC
MRS R CHAPMAN
MR M CLANCY
APPELLANT | |
(2) MRS M WOODWORTH |
RESPONDENT |
Transcript of Proceedings
JUDGMENT
For the Appellant | MR SIMON GORTON (of Counsel) Instructed by: Messrs SAS Daniels LLP Solicitors 30 Greek Street Stockport Cheshire SK3 8AD |
For the Respondents | MR KEVIN McNERNEY (of Counsel) Instructed by: Messrs Laytons Solicitors 22 St John Street Manchester M3 4EB |
SUMMARY
NATIONAL MINIMUM WAGE
The Appellant employed the Respondents as respectively deputy housekeeper and housekeeper at the Appellant's sheltered accommodation. The housekeeper worked 37.5 hours per week (08.30 to 14.00 and 16.00 to 18.00 Monday to Thursday) but she was required to be on call in the flat provided to her from 21.00 to 08.00 each day she worked. The deputy housekeeper worked 08.30 to 14.00 and 16.00 to 18.00 on Friday and Saturday but was required to be on (with a room provided for her) from 21.00 Thursday to 08.30 Friday and 21.00 Friday to 08.30 Saturday. They claimed that the hours they were on call were hours during which they were "at work" and so they were entitled to be paid for those on call hours at least at the rate of the national minimum wage. The ET so held. Its award to the Second respondent was "£25,000 net." On appeal it was held that by virtue of Reg 15(1A) of the National Minimum Wage Regulations they were only entitled to be paid for those on call hours when they were awake for the purpose of working. In any event the ET did not have jurisdiction to make an award of "£25,000 net" ie £25,000 plus tax and NI contributions. Its total jurisdiction was limited to £25,000.
HIS HONOUR JUDGE REID QC
Preliminary
Facts
Employment Tribunal findings
The legislative provisions
Authorities
The Appellant's case
The Respondent's case
Discussion
"......But regulation 15 only arises in a case where a worker is not in fact working, but is on call waiting to work. In this case, as we have seen, the tribunal found as a fact that the workers were working throughout the period of their shift. Regulation 15 is therefore irrelevant to these facts; and, moreover, even if that were not the case, it is in my judgment impossible to construe out of regulation 15 a rule applying to the whole of these Regulations, that obliged a tribunal to make a different finding in respect of the nature of a person's activities with regard to work just because they were being carried on at the employee's place of residence."
"Regulation 15 relates to workers who are, in colloquial terms, "on call". When a worker falls into that category he has to be paid the minimum wage for his waiting hours, unless he is on call at home…. However, if the worker is permitted to sleep when on call, the hours during which he is permitted to sleep and when he is not actually working do not count as the equivalent of time work."
"The terms on which [he] was engaged in the employment of the appellants, which we have quoted earlier, make it clear that in return for remuneration at the rate of £210 per week the respondent was required to attend at their premises between 5 pm and 7 am seven days per week as a nightwatchman. The work which was paid for under his contract by reference to the time for which he worked was, for the purposes of reg. 3, his attendance as a nightwatchman for the whole of those hours. The fact that the activities of a nightwatchman were not spelt out in the letter is neither here nor there. More importantly the fact that the respondent had little or nothing to do during certain hours when he was permitted to sleep does not take away from the fact that he was throughout in attendance as a nightwatchman and required at any time to answer the telephone or to deal with alarms. The employment tribunal, in our view, confused their estimate of the hours during which the respondent was generally active with an overall consideration of what was required of him as a nightwatchman at any time."
"47 In our judgment, when the principles laid down in SIMAP [2001] ICR 1116 and Jaeger [2004] ICR 1528 are applied to the circumstances of the claimant, they lead to the conclusion that the whole period when she was on call constituted working time. She was required to remain at or within a very short distance of her home, which was located within her place of work and contained her office. She was never off duty. She was always liable to answer calls directly from residents. She had to remain available at the place determined by her employers with a view to performing services if need be or when requested to intervene.
48 In the claimant's case, the likelihood of her being telephoned and called out was very substantially less than the likelihood of a doctor being called out while at rest in a hospital. But (unless the likelihood of call out is so insignificant as to be trifling) we do not think the extent to which the worker is likely to be called out (which might fluctuate from time to time) can be decisive of the question whether he or she is working. Nor would it be satisfactory to ask whether the accommodation provided by the employer was intended to be, or might constitute, the worker's home. If this were the key question, it would be productive of much litigation, for many workers have accommodation which goes with their job, but maintain another home of their own. In our judgment, the essential conclusion of the Court of Justice in Jaeger is to be found in para 69 of the judgment."
"In our judgment, the claimant undertook "salaried hours work" within the meaning of regulation 4 of the 1999 Regulations. Her salary was expressed to be £8,750 in respect of "four days per week of 24-hour on site cover". This, in our judgment, was a contract to do salaried hours work: see regulation 4(1)(a) and (2). The claimant was entitled to be paid for an ascertainable basic number of hours in a year: regulation 4(2)(a). She was entitled to be paid an annual salary regardless of the hours actually worked in any particular week or month: regulation 4(2)(b). She had, in respect of those hours, no entitlement to any payment other than annual salary: regulation 4(2)(c). Moreover the work which she did under that contract was work in respect of which she was not entitled to payment in addition to annual salary: see regulation 4(6). For the reasons we have given, the claimant was at work throughout the period when she was providing on site cover, so regulation 15(1) does not arise: see British Nursing Association v Inland Revenue [2003] ICR 19, 24."
"In the present case, the claimant was clearly subject to employer requirement throughout the sleep-over periods. The reason that he slept over in the hotel was that the respondents were under an obligation to have at least two employees present there overnight for health and safety and fire regulation purposes. The requirement that the claimant remain in the respondents' hotel premises during sleep-over periods was of such significance that he was liable to and indeed had been disciplined in the event of his leaving the hotel at any time during such a period. That was in circumstances where the claimant's own home was not far away. It was, however, clearly not sufficient for the respondents' purposes that the claimant be at home and on call. He had to be in the hotel. The fact that he was there met a need of the respondents. He met that need throughout each sleep-over period. Being present in the premises was, primarily, what he was employed to do during sleep-over periods. That was, accordingly, his "work". I am readily satisfied that the Tribunal were in error in taking the view, as they did, that he could only be regarded as working if he was carrying out some specific activity during a sleep-over period. That approach simply misses the point."
Conclusion