News

Limitation on claiming holiday

New legislation on the limitation on claiming holiday. From 1st July 2015, the Deduction from Wages (Limitation) Regulations 2014 limits the period of time in respect of which employees can claim backdated, underpaid holiday pay to a period of two years. This will apply only to cases raised on or after 1st July. This means that claims for underpaid holiday pay will not be allowed where the date of the payment in question was more than two years before the Trubunal claim was raised. These Regultions are a direct result of the decision in Bear Scotland which decided that non-guarnteed overtime payments should be included in holiday pay calculations. The EAT also held in the Bear Scotland case that claims will be time barred where there has been a break of more than three months between the successive underpayments, thus severely limiting an employee's entitlememt to claim and backdated unpaid sums.