Construction union UCATT have won a landmark victory at the Employment Appeal Tribunal against housing giant Redrow Homes, over the use of substitution clauses in contracts.

Many construction companies, especially housebuilders, have attempted to avoid paying holiday pay, through these and similar tactics.

The case involved two UCATT members from East Yorkshire who were employed as bricklayers by Redrow Homes (Yorkshire Ltd).

The two men signed contracts which described them as "self-employed bricklayers". The contract contained a clause which in theory allowed the workers to send a substitute in their place.

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In autumn 2007, the Hull Employment Tribunal judged the contracts to be a "sham" as it "did not seriously reflect the relationship between the parties" and "it was never expected by either side, seriously or otherwise, that either of the Claimants would seek to provide a substitute or refuse the work offered".

The tribunal also was highly critical of the company, stating: "Redrow in effect wanted workers but did not want to incur the obligation to pay holiday pay."

Despite the clear judgement, Redrow appealed the original judgement to the Employment Appeals Tribunal (EAT). After a nine-month delay the EAT again last week ruled in the union's favour.

Alan Ritchie, General Secretary of UCATT, said: "This judgement is highly significant. It once again shows that construction companies have got to realise that like the rest of the economy their workers are fully entitled to receive holiday pay."

(CD/JM)