RBS fixed-term contract staff win right to bonus payment

Fixed-term
contract staff at the Royal Bank of Scotland (RBS), who were excluded from
bonus payments when the bank took over NatWest, have won the right to payment
at an employment tribunal.

Permanent
staff at RBS were paid a one-off bonus of 5 per cent of their salary in
recognition of the integration of NatWest following its take-over.

However,
contract staff were excluded from the pay-outs because of their fixed-term
status.

The
decision not to pay contract staff the bonus was taken despite the introduction
of new European legislation in October 2002 guaranteeing fixed-term contract
staff the same benefits as their permanent colleagues.

Clare
Moody, UNIFI negotiator, said: "We hope that this decision will act as a
deterrent for other employers who think they can get away with discriminating
against workers on fixed-term contracts."  

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There
are another 85 cases pending and the bank has until the end of April to appeal
the employment tribunal’s decision.

By Michael Millar