New employment legislation has been introduced by the government which will come into force from 8th January 2015.
The Deduction from Wages (Limitation) Regulations 2014 comes on the back of a recent Employment Appeal Tribunal ruling which stated that regular overtime should be taken into consideration when calculating an employee’s holiday pay.
The new legislation will limit certain unlawful deductions claims to two years before the date the ET1 is lodged, and also explicitly states that the right to paid holiday is not incorporated as a term in employment contracts. Claims relating to deductions from certain payments including statutory maternity and adoption pay, sick pay and guarantee payments are not affected by the new legislation.
This will remove the possibility of employees bringing long-term claims for back holiday pay in a Tribunal or civil court action. However, the new regulations will not affect ET1s presented before 1st July 2015.
You may read the full text of the new regulations at the following link:
Amy Hallam, employment law specialist at BRM Solicitors.