Unite not to appeal holiday pay ruling
At the beginning of this month we blogged about the EAT’s highly anticipated decision on the holiday pay cases of Bear, Hertel and Amec where it held that regular non-guaranteed overtime should be included when calculating holiday pay.
However, it was not all bad news for employers, with the EAT limiting the scope of holiday pay claims. Before the ruling there were concerns that claims for back-pay of underpaid holiday pay could go as far back as 1998 – however the EAT held that unlawful deductions from wages claims can only be brought within three months of the last in a series of deductions. A gap of more than three months between underpaid holiday periods breaks the series. Therefore, the potential for workers to claim holiday pay going back over a number of years is limited (depending on how they have spaced out their holidays).
This week WSB announced that Unite will not be appealing this point. Whilst this may lead employers to breathe a sigh of relief about the potential for significant numbers of backdated claims, be aware that this relief may only be temporary as the EAT’s approach was somewhat ‘creative’ and may well be appealed by someone else in the future.
If you have any queries relating to holiday pay and how this might affect you, please do not hesitate to get in touch with a member of our team. There is no ‘one size fits all’ approach and we are happy to talk through your particular circumstances.