48-hour working week loophole to be closed

A loophole in the European Working Time regulations allowing people to work more than the designated 48-hour week is to be closed.

The 1999 regulations are to be fully enforced over the next few years as the loophole, which means employees can sign a contract to opt out of the 48-hour limitation, is shut for good. This is likely to add thousands of pounds to wages bills as pub operators are forced to employ extra staff to cover the additional hours and could lead to dramatic pay cuts for pub managers.

The rule allowing employees to waive the maximum weekly hours limit is due to be reviewed by the European Commission in 2003, when, according to insiders, there is a "reasonably good chance" that the opt-out clause will be removed.

Britain is expected to argue for a transition period of two years before the 48-hour week becomes compulsory, but by 2005 it is likely to be in place.

If this does happen it will have a huge impact on employees, such as pub managers, who often work more than 48 hours every week.

Under the new rules, it would be acceptable to work more than 48 hours in any given week, but over 17 weeks the average hours worked must be less than 48. Many of the people who will be affected by the ruling are those who put in long hours to compensate for a relatively low hourly rate, such as bar staff, waiters and hotel workers. This money-making overtime would be made effectively illegal under the proposed changes.

Workers such as pub managers, who are paid a salary rather than an hourly rate, are less likely to see their wages cut. But as their salary is dependent on them doing a particular job - one which often entails working more than 48 hours a week - the opt-out clause ban will still have an effect.

Ironically, if the clause is abandoned, much of the onus for keeping records of hours worked will fall to the employees themselves.

Those under pressure from their employers to work long hours, could easily "forget" to keep track of all the hours they work.

The only workers who are, and will continue to be, exempt from the working time regulations are the self employed, which includes most licensees. They will still be allowed to work as many hours as they want or need to.

The Confederation of British Industry has said it intends to lobby hard for the opt-out clause to be retained.