Councils could face large pay-outs to part-time employees after union Unison won an employment tribunal victory against London Borough of Greenwich.
The council this week agreed a settlement worth around £4m after being forced to revise the formula it used to calculate holiday allowance and paying the correct rate, backdated to 2013.
UNISON assistant general secretary Christina McAnea said: “This is a victory for all low-paid women working in the public sector. What started out as just one case could soon be having an impact far beyond South East London.
“Laws that began life in Europe have enabled UNISON to restore justice and ensure that all part-time workers in the Royal Borough of Greenwich are paid the correct holiday pay for the jobs they do.
“Other employers may have made similar errors with their holiday calculations. If they have, we’ll be on to them to make sure all term-time staff are paid what they are due.”
