News

New legislation on the limitation of claiming holiday. From 1 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 1 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 Tribunal claim was raised.  These Regulations are a direct result of the decision in Bear Scotland which decided that non-guaranteed 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 entitlement to claim any backdated unpaid sums.