European court rules travel time is working time for some employees

The judgment, which takes effect immediately, has been welcomed by trade unions but criticised by business groups who fear additional employment costs for thousands of companies.

The ruling was made yesterday in a case brought by a Spanish trade union against security systems company Tyco, which refused to recognise its workers’ daily travel time as working time after scrapping its regional office and making employees travel to appointments from home.

British firms employing care workers or gas fitters could now find themselves in breach of EU working time regulations if they do not adjust their own practices.

UNISON general secretary Dave Prentis warned: “This judgment is bound to have a significant impact in the UK, particularly on home care workers.

“Tens of thousands of home care workers are not even getting the minimum wage because their employers fail to pay them for the time they spend travelling between the homes of all the people they care for.”

Suzanne Horne, partner and employment lawyer at Paul Hastings LLP, said: “The ruling from the European Court of Justice that for those employees without a fixed place of work, travel time between their first and last appointments should be regarded as ‘working time’ is another blow to UK employers which impacts the bottom line.

“The decision has immediate application and employers have no choice but to comply. This will create a serious burden for companies at a time when there is already pressure to foot the increasing salary bill resulting from case law on holiday pay, increased National Minimum Wage and next year’s new National Living Wage.

“Aside from the salary costs, there are additional questions about how this impacts an employee’s entitlement to daily rest breaks and the 48 hour maximum working week, as well as other employer liabilities, such as travel expenses.”

She added: “While employers work out the finer detail, it is obvious that this decision will add fuel to the Brexit debate.”