CONTRACTORS and subbies are being urged to check that contractual arrangements are in order to avoid confusion and legal action over holiday pay following a recent landmark ruling.
Three bricklayers failed in their bid to claim over £15,000 in holiday pay from Sheffield firm Sheaf Brickwork at an employment tribunal in Hull last month.
The tribunal ruled that because the trio had signed a contract of service with the company they were neither workers or employees because the contracts stipulated that they were not personally obliged to carry out work.
They each held CIS cards and were responsible for their own National Insurance with a flat rate deduction of 18 per cent by Sheaf.
After they ended their working relationship with Sheaf of their own free will, the three made a claim for unpaid holiday pay.
Jay Bhayam, a solicitor at law firm Watson Esam, which handled the case for Sheaf, said: 'All the big case law went against the company. But the ruling was based on the watertight contractual arrangements in place.
'As subbies, the whole point is that there is no employment relationship between the two parties.
'With this contract for services the subbies were not entitled to holiday pay because they were not personally obliged to carry out the work.The contract stated that a substitute worker could be sent at the discretion of the subcontractor.'