Housebuilder continues legal battle to deny workers holiday pay on basis of 'sham' substitution clauses

UK housebuilder Redrow is continuing its legal fight to deny two of its workers holiday pay.

The case involves two bricklayers from Bridlington, East Yorkshire, who were originally denied holiday pay by Redrow because substitution clauses had been inserted into their contracts.

An employment tribunal and an employment appeal tribunal ruled that the substitution clauses were a 鈥渟ham鈥�, but despite these twin defeats Redrow is taking the case to the Court of Appeal.

Redrow was defeated in a previous case involving substitution clauses at the Court of Appeal in 2004.

Following the 2004 decision, the company attempted to rewrite contracts rather than pay workers holiday pay, which has led to the latest case.

Construction union Ucatt has reacted angrily to the news. Alan Ritchie, general secretary, said: 鈥淲e are very disappointed. Major housebuilders need to accept that they have to pay holiday pay to workers just like any other company.鈥淚f the Court of Appeal finds in favour of the workers, they are set to receive just a couple of thousand pounds in unpaid holiday pay. The legal case, which has already taken well over 12 months, has cost far in excess of what the workers will receive.鈥�

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