Workplace Report December 2009

Law - Contracts

Contract law - the key developments

• A written contract may not accurately reflect a worker’s true employment status, if there is evidence to show the real intention of the parties regarding the working arrangements was different (case 1).

• Where a worker’s contract of employment states that pay in lieu of all untaken holidays will be made on termination of employment, European law does not require this to be confined to pay for untaken holiday in the final year of employment (case 2).

• Where workers become sick during their first four weeks’ annual leave, they must be allowed to take the leave at another time if they so wish (case 3).

• An employee’s basic rate of pay must not fall below the National Minimum Wage (NMW), even if s/he receives enhancements which take her/him over the NMW (case 4).