In the UK there are two legal definitions of insolvency. The first is where an individual or...
The cost of staff on strike
How do you calculate how much pay should be withheld from staff who go on strike? Three teachers, who had been on strike for a day, claimed that the college that they worked for had withheld more pay than it was entitled to in respect of that day.
The teachers argued that the amount that should have been withheld for a day’s pay should have been 1/365th of their annual salary, simply dividing their salary by the number of days in a year. The college, however, had based its calculation on a 5 day working week, multiplying it by the 52 weeks in a year, making the sum to withhold 1/260th of their annual salary, a larger sum than if they had used the 1/365th calculation.
This case went to the Court of Appeal, which has confirmed that the college was correct; they had deducted the correct sum.