The Supreme Court has ruled care providers do not have to pay the national minimum wage to staff for the time that they are asleep but on call during sleep-in shifts.
In handing down its judgement on the Royal Mencap Society v Tomlinson-Blake case, Supreme Court justice Lady Arden ruled sleep-in workers are only entitled to be paid the national minimum wage for the specific time they are called upon to provide assistance, rather than being paid for the entire time they are on-call during their shift.
The Court reached this decision on the basis that although the workers were available for work, workers are still expected to be able to sleep during this time, and were paid a flat rate to cover this.
Law firm Charles Russell Speechlys said employers, particularly those in the social care sector, will be “breathing a sigh of relief” following the ruling. It is estimated care providers were facing an estimated £400m bill if the Supreme Court had ruled carers should be paid for their time asleep.
“This decision means the ongoing support for vulnerable people will be safeguarded and will also contribute to strengthening the sustainability of the sector,” said associate Amelia Goodwin.
“The ruling will also affect employers in other sectors too, who engage sleep-in workers at their premises, such as security staff or those providing emergency IT cover. However, it is likely that low paid workers in the care sector will find this ruling a disappointing result,” she added
Siobhan Mulrey, an employment law specialist at law firm Irwin Mitchell said: “Care organisations will breathe a huge sigh of relief as, had the Supreme Court ruled against them, they would have faced huge and, for many, unaffordable liabilities.
"On the other hand care workers will be very disappointed, particularly as they perform a vital service, yet are some of the poorest paid workers in our society."
Care England said it welcomed the clarity provided by the Supreme Court with the judgement delivered.
“After a lot of uncertainty it is useful to have this ruling from the Supreme Court. Our staff are our best resource and need to be valued as such,” said chief executive Martin Green.
“This is all part of the broader picture of the much needed reform of the adult social care sector, which we will continue to press the government on,” he added.