Part-Time Workers Win Major Victory in European Court Rulings

Strategic Insights -

Yesterday's rulings by the European Court have brought significant improvements to the lives of part-time workers in the UK. The court's decisions have clarified that part-time employees are entitled to the same benefits as their full-time colleagues in occupational pension schemes, including the right to claim benefits from as far back as 1976. This victory is seen as a major step towards full equal rights for the UK's six million part-time workers. However, pressure groups for the low-paid have noted that pension entitlement means little without a minimum wage to support contributions.

Key Takeaways:

  • The European Court ruled in Vroege v NCIV that Article 119 of the Treaty of Rome offers protection to part-time workers who find themselves barred from the benefits enjoyed by their full-time colleagues in occupational pension schemes.
  • The court also ruled in Fisscher v Voorhuis Hengelo that part-time workers are entitled to claim benefits from as far back as 1976 - when European discrimination legislation was introduced - if they are prepared to pay the contributions for the period.
  • The granting of equal pension rights is seen as another significant victory for the economy's growing part-time workforce, five million of whom are female.
  • The TUC has stated that the judgments will ensure that at least some part-time workers can look forward to some dignity in retirement.
  • The GMB general union said the judgments were crucial for part-time workers whose earnings represented the household's only income.
  • Many employers created part-time jobs as a method of avoiding National Insurance contributions and other full-time employee benefits, but they will now have to face up to their obligations.
  • The shop workers' union, Usdaw, has stated that retail sector wages of £3 to £4 an hour have precluded most part-timers from affording a personal pension.

Statistics:

  • 6 million part-time workers in the UK will benefit from the European Court's rulings
  • 5 million of the part-time workforce are female
  • £3 to £4 an hour is the retail sector wage range that has precluded most part-timers from affording a personal pension

Sources:

  • The European Court's ruling in Vroege v NCIV
  • The European Court's ruling in Fisscher v Voorhuis Hengelo
  • The TUC's statement from general secretary John Monks
  • The GMB general union's statement
  • Usdaw's statement
  • The Low Pay Unit's statement from director Chris Pond