Now that the Supreme Court has ruled in the Mencap sleep-in pay case, deciding that only hours spent awake for the purpose of working should be paid at NMW rates, care sector employers should now:
- Explain the outcome of the case to staff, including where there are ongoing discussions around rates of pay pending the Supreme Court decision.
- Consider how to address sleep in shift pay, particularly those providers who have adopted NMW rates for sleep in shifts.
- Examine the financial impact on your business, and whether this will lead to any changes in fees – both private and local authority rates.
- Await further guidance from HMRC on its stance on the ruling.
For those providers who have gone through or are going through a disposal or acquisition of their business, seek guidance from legal advisors as to how this affects your position.