The British government suffered a humiliating defeat after the European Court of Justice ruled that time spent travelling to work ought to be paid by employers.
The government had wanted time spent commuting to the first job of the day to not be regarded as paid work due to its concerns over increased costs for businesses.
However, the move is seen as a massive victory for carers who have been particularly susceptible to travelling long unpaid hours. The ruling will mean that companies will most likely have to pay higher wages in order not to go under the minimum wage and break the law, as well as having to hire more workers and give more breaks.
Under UK government guidelines, time spent travelling at work counts towards the 48 hour EU working time Directive imposed by Brussels. However, “normal travel to and from work” and “travelling outside normal working hours” does not.
The court ruling said: "The fact that the workers begin and finish the journeys at their homes stems directly from the decision of their employer to abolish the regional offices and not from the desire of the workers themselves.
"Requiring them to bear the burden of their employer's choice would be contrary to the objective of protecting the safety and health of workers pursued by the directive, which includes the necessity of guaranteeing workers a minimum rest period."
British government lawyers had tried to make the case that dishonest employees could take advantage of the regulation to file for more expenses than they were really owed. However, judges ruled that it was the company’s responsibility to ensure that the situation was prevented.
Glenn Hayes, a partner at law firm Irwin Mitchell, said: “In certain industries, such as the care industry, it will have a huge impact.
“If you bid for a contract, and your costs go up, it could be potentially astronomical.”
Besides the government, business leaders were also quick to express their anger at the EU ruling.
Allie Renison, the head of trade policy at the Institute of Directors, said the European Court of Justice had “become a red-tape machine, tormenting firms across Europe.”
“The Working Time Directive needs to be reviewed, in order to resolve the lingering questions which are now being ruled on by the ECJ. Ensuring that employers do not have additional costs and burdens sprung upon them like this must be a core element of the Prime Minister’s renegotiation efforts.”
