ECJ paid leave ruling could hit firms hard

Retailers and caterers could be hit hard by a European Court
of Justice preliminary ruling on the right to paid leave.

The ruling said that the UK working time regulations which give
employees the right to paid leave after 13 weeks of continuous employment is
incompatible with the Working Time directive.

The advocate-general said the UK has acted unlawfully by
denying workers the right to paid holidays when employed on con- tracts of less
than 13 weeks. 

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If the ECJ decides in favour of the ruling then many sectors
will be affected, particularly hospitality, catering and retail.

Antonia Reid, business development manager at hospitality
group Mayday said, “If ECJ rules in favour of this opinion, then there will be
a substantial administrative and financial cost to our sector.”