The purpose of this Bill is to give all non-agricultural workers a statutory right to a minimum of two weeks holidays each year, with pay, plus the public holidays, or compensatory leave or pay for employees who may have to work on a Public Holiday. This represents an increase of one week in the present minimum provided for in the Holidays (Employees Act), 1939. The 1939 Act did not apply to workers whose remuneration exceeded £350 a year. There is no wages ceiling in the new Bill. The figure of £350 specified in the 1939 Act bears little relationship, of course, to present day money values. I had considered the desirability of an appropriate increase in this figure but I have now decided that it is not really necessary to prescribe any upper wage limit in the Bill.
The definition of "worker" in the Bill is, therefore, a wide one but it is necessary to take power to make special provision for certain classes of workers, for instance, insurance agents paid on commission. The position is being met by a provision which will enable the Minister to make regulations bringing classes of persons within the scope of the Bill.
Since 1939, a considerable number of workers have, through collective bargaining between trade unions and employers or otherwise, secured an additional week's annual leave. Many workers have a statutory right to this extra leave by virtue of Orders of the Labour Court, made in accordance with proposals of Joint Labour Committees, or by virtue of Agreements registered under the Industrial Relations Act, 1946. The Government would have preferred if all workers had been able to secure these additional holidays by collective bargaining. However, it is clear that many workers are not in a position to do so. It is mainly to bring the holiday allowance of these workers up to the present accepted standard that the Bill is being introduced.
The Bill is a consolidating and amending measure. It will cover all classes of workers, irrespective of salary or type of employment. It proposes to abolish the distinction in existing legislation between workers who have a separate entitlement to public holidays and workers who have no such entitlement but get additional annual leave. If this distinction were retained, certain employers, for instance those in Sunday trading shops and refreshment houses, would be obliged to give their workers three consecutive weeks' annual leave in the year without any option to give days off, or compensatory pay, in lieu of public holidays. I am satisfied that a greater flexibility than this would be beneficial to both workers and employers.
As I have said, the Bill provides that workers should get six public holidays in the year with pay. In general, under the Conditions of Employment Act, 1936, the carrying on of industrial work on public holidays is prohibited. There are, however, a number of exceptions to this, for example, some types of shift work and work covered by special exclusions. In non-industrial employments many workers would, in the normal course of their employment, be required to work on all or most of the public holidays. Even where public holiday work was not a normal feature of his job, a worker might, in exceptional circumstances, have to work on an odd public holiday. It is, therefore, necessary and desirable to retain the various alternatives which existing legislation provides to cover such cases.
A worker who is required to work on a public holiday will, therefore, be entitled to one or other of the following:—
(a) a day off, with pay, within a month; or
(b) an additional day, with pay, added to his annual leave; or
(c) extra payment for the public holiday.
The 1939 Act provided for payment of a worker who worked on a public holiday and who was not given a compensatory holiday, at a minimum rate of time and a quarter. The Bill proposes that this rate be increased to double time. The qualifying period in the five weeks preceding a public holiday which a worker must work before becoming entitled to the Public Holiday with pay is being reduced from 150 to 135 hours. This takes account of reduction in working hours in recent years and allows a reasonable margin to cover short-time working, sickness or other casual absences. Other new provisions in relation to public holidays are that days of annual leave and hours lost through wet-time will count as hours worked in the qualifying period.
The qualifying period of work for adult workers for the purpose of qualifying for annual holidays is also being reduced from 1,800 to 1,600 hours in the year. Here again, wet-time up to a maximum of 250 hours will count as time worked. It is the practice in some employments that workers get, at present, in addition to one week's annual leave and public holidays, other days off with pay. These days may be Church holidays or other holidays customary in particular parts of the country. I think that many of these workers and their employers would wish to continue such arrangements. Accordingly, the Bill contains a new provision that such extra holidays may be counted as annual leave up to a maximum of seven days in any year.
The Bill re-enacts provisions in existing legislation about the payment to workers, who leave employment before they receive annual leave, of an appropriate proportion of holiday pay. This payment is known as "cesser" pay under the 1939 Act. With the increased annual leave, the amount of cesser pay to which any worker will be entitled in respect of a particular period will, of course, be proportionately higher under the new Bill. Furthermore, the monthly qualifying hours for entitlement to cesser pay are being reduced from 150 to 135, in line with the reduction in the qualifying hours for annual leave entitlement.
A number of provisions in existing legislation are being retained either unchanged or with minor amendments. For instance, the Bill continues the provision that an employer who dismisses a worker immediately before a public holiday must, if the worker has worked for the qualifying period, pay him a day's pay in respect of the holiday. Workers will continue to be entitled to get annual leave within their employment year, that is a year counting from the date or anniversary of the date, of entry into employment. A worker whose remuneration includes board and lodgings must be given a specified daily allowance in lieu while on holidays but the rate of allowance prescribed in the 1939 Act is being appropriately increased. The Bill in its present form is, in many respects an agreed measure, and it is the Government's hope that it will be brought into force without delay so that workers may get early benefit from its provisions.