Holiday Pay Claims to be Limited to Two Years

8th January 2015
Holiday Pay Claims to be Limited to Two Years image

Holiday Pay Claims to be Limited to Two Years

Following the Landmark EAT Judgment in Bear Scotland Limited and others v Fulton and others, payments for non-guaranteed overtime must be taken into account in calculating holiday pay. The Government set up a taskforce to assess the impact this decision might have on employers. In doing so, the Government announced that it was “taking action to protect UK business from the potentially damaging impact of large backdated claims”.

On the 18th of December 2014 the Government announced the conclusions of the taskforce and implemented the Deduction from Wages (Limitation) Regulations 2014.

The Government recognised that although the EAT had limited backdated claims, as there could not be a gap of more than three months between any “series” of deductions, there was still the possibility that these claims could be brought extending as far back as 1998. This obviously represented a major potential liability for businesses whose employees undertook non-guaranteed overtime.

The new rules impose a two year limitation on all claims for backdated holiday pay claims related to non-guaranteed overtime. These new rules will take effect from the 1st of July 2015.

Obviously this is beneficial for employers as it will limit potentially large claims and will provide a level of certainty as to potential liability.

Until the 1st of July 2015 employees can still bring holiday pay claims that could potentially date back beyond the two year period if the deductions formed a series with any gaps between them being not more than three months. Hence the new rules do not protect employers currently, and will only do so from the 1st of July 2015.

If you are an employer or an employee requiring advice on a holiday pay claim then please contact Daven Naghen head of our Employment Tribunal. Dav can be contacted on 01775 722261, daven.naghen@maplessolicitors.com or by writing to or visiting our offices at 23 New Road Spalding Lincolnshire PE11 1DH.


Maples supporting Macmillan Coffee Morning image

Maples supporting Macmillan Coffee Morning

On 29th September 2017 Maples Solicitors LLP will be hosting a coffee morning as part of Macmillan’s “World’s Biggest Coffee Morning”.

Tea, coffee and cakes will be served from 10:00am until 1:00pm and all donations received will go to Macmillan Cancer Support to assist them with providing medical, emotional, practical and financial support to those facing cancer and their families.

At the same time, Maples will also be running a free Wills, Lasting Powers of Attorney and Probate clinic so that whilst you are in the office you may take the opportunity to discuss any of these with one of the Private Client Team with no obligation to commit. You can use the time to raise any questions you may have about making a Will, who you could appoint as Executors, whether you need a Power of Attorney or how a Power of Attorney works, for example.

Maples hope to see their existing clients join them for the coffee morning and very much look forward to meeting new people- everyone is welcome!

If you would like to discuss any matters in relation to Wills, Lasting Powers of Attorney or any Probate related matters prior to the coffee morning then please contact one of the lawyers in our private client team:-

Jane Mawer- jane.mawer@maplessolicitors.com
Jamie Dobbs- jamie.dobbs@maplessolicitors.com
Faye Blair- faye.blair@maplessolcitors.com

Or telephone the office on 01775 722261 and ask to speak with one of the team.

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Anita Zaborniak

We found it a pleasure to deal with Anita Zaborniak, she was most helpful and informative and kept us up to date with the progress of the purchase of our new home. If we were to move again we wouldn’t hesitate to use Maples again.