Care providers will be left with an estimated £400m bill if the Supreme Court overturns an appeal on social care sleep-in pay, according to law firm Royds Withy King.
The Supreme Court will on 19 March deliver its decision on whether care providers must pay National Minimum Wage to staff working sleep-in shifts.
Social care providers have for many years worked on the basis and guidance from HMRC that the National Minimum Wage was not payable for the time staff spent sleeping while at work.
However, the Employment Appeal Tribunal challenged this and found that sleep-in shifts are working time and subject to National Minimum Wage.
In 2018, the Court of Appeal overturned that decision. It was appealed to the Supreme Court, which will hand down its decision on Friday morning at 9.45am.
If the Supreme Court overturns a Court of Appeal decision delivered in 2018 it will may push many care providers into insolvency, said Royds Withy King head of social care James Sage (pictured).
“The Supreme Court, should it find that sleep-in shifts are subject to National Minimum Wage, will deliver a devastating blow to the social care sector at a time when it can least afford it,” he added.
“It is likely to see many care providers collapse or be saddled with considerable debt."
