Commentary

(8) Restructuring pay rates to comply with statutory obligations

Division BI Pay
| Commentary

(8) Restructuring pay rates to comply with statutory obligations

| Commentary

(8)     Restructuring pay rates to comply with statutory obligations

Care must be taking when restructuring pay rates so as to comply with statutory obligations. So, for example, in Davies v M J Wyatt (Decorators) Ltd[2000] IRLR 759, EAT, it was held that there was an unlawful deduction from wages when the introduction of the statutory right to paid holiday under the Working Time Regulations 1998 SI 1998/1833 was financed by a pro-rata decrease in wages that had been 'foisted' on the claimants by their employer without their agreement. Davies was subsequently applied in Laird v A K Stoddart

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