Hospitality faces £100m bill for EU directive

The European Union Working Time Directive will cost the UK hospitality industry between £75m and £100m a year in additional payroll costs, claims the British Hospitality Association (BHA).

The directive's provisions include: a maximum 48-hour week, except where formally agreed with employees; a compulsory rest period of 11 hours in each 24; and a limit on night work of eight hours in any 24-hour period. The UK Government is challenging the directive at the European Court of Justice, but is expected to lose when the court announces its decision on 12 November.

The BHA made its forecast this week as it released the results of a survey conducted among more than 700 of its members, who together employ 53,000 staff.

Two-thirds of the businesses surveyed have staff who work more than 48 hours a week on a regular basis. These employees account for nearly 15% of their work-forces.

More than two employers in five have employees who do not normally receive an 11-hour break in every 24, or a full 24-hour break each week. This is nearly 14% of employees.

The directive will also require a minimum of three weeks' paid annual leave, rising to four weeks in 1999. One third of employers surveyed had staff who did not receive four weeks' leave. This represents nearly 13% of employees.

BHA deputy chief executive Martin Couchman said the addition of an extra week's holiday would by itself add £40m to the industry's payroll costs.

Although much of the impact will depend on how the directive is implemented in the UK, Mr Couchman said the industry should "be prepared for a real shock".

But Janet Gray, head of human resources at Jarvis Hotels, said the directive was unlikely to have a great impact on large companies such as Jarvis, which already operates a 39-hour week and offers four weeks' annual holiday.