Employers who employ shift workers should consider including a cancellation clause in their employment agreements if they want to avoid paying the full cost of cancelled shifts.
New legislation coming into effect on 1 April 2017 means staff whose shifts are cancelled will be entitled to be paid what they would have earned if they had worked the shift.
However, this new requirement will not apply if the employment agreement includes a cancellation clause that specifies:
In that case, an employer will only have to pay the full amount of a cancelled shift if:
There is no legislative penalty for not having a cancellation clause. However, employees can raise a personal grievance if they are disadvantaged by the lack of a cancellation clause. And the new legislation means they will also be able to claim full remuneration for any cancelled shift.
If you employ shift workers and there is a chance you may have to cancel their shifts, we recommend that you include a cancellation clause in your employment agreements to avoid having to pay the full cost of any cancelled shifts.
Also coming into effect on 1 April 2017 are new rules regarding: