Pay turns to Ash! Employees' Entitlements after the Icelandic Volcano

As the UK sky returns to normality, companies across the country are now counting the cost of the disruption and payroll departments have been left confused as what they should do in terms of pay.

An employee's entitlement will largely depend on the terms of their contract. If it makes provision for such a specific eventuality then the position would be straight forward. However, that is pretty doubtful so the employer will need to consider whether the employee is paid for work or for service. If the employee is paid in respect of the work done then they will not be entitled to payment as most would likely be employed under contracts that express an hourly rate.

If the employee is paid for their service - usually as an annual salary - the position is less clear. It would appear highly arguable that if the employee is not available to work then he/she is not entitled to payment for that period. However, the employer may have set a precedent in previous similar situations which conflicts with that position. Therefore, it is important that before making a unilateral decision you seek advice. If the employer can agree with the employee that the time off can be taken as holidays that may be a happy resolution. However, an employer cannot force the employee to take the time off as part of their statutory holiday entitlement.

For a free initial consultation about any employment law issues please contact Andrew Moore, andrew.moore@clough-willis.co.uk or Tim Gray, timothy.gray@clough-willis.co.uk.