Entitlement to allowances

Case 6: The facts

A group of council employees received an “irregular hours” enhancement for working part of their normal working week outside the council’s normal working hours, but argued that they should instead get weekend and night working allowances – as set out in the “Red Book” containing their national agreement.

Other contractual terms were set out in the Principal Statement of Terms and Conditions of Employment (TCE); this stated that the workers’ conditions of service were in accordance with the Red Book, but also specified the 7.5% irregular hours payment. Since this payment is not made to those receiving the night working allowance, the claimants argued that the terms were ambiguous and should be decided in their favour.

The ruling

The key question in determining conditions of service, the EAT said, is “what are the parties’ intentions?” It concluded that the Red Book is only incorporated into individuals’ contracts to a limited extent, as councils can agree to “adopt” or “apply” the Red Book or parts of it.

The EAT added that it was clear from the documents that the TCE specifically referred to all terms from the Red Book that applied to the employees. As the TCE did not refer to any allowances in the Red Bookbut said the employees would get irregular hours payments of 7.5%, this was their only entitlement – and is what they had received throughout their employment.

Stenson and others v West Dunbartonshire Council UKEATS/0089/06