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Cap imposed on holiday pay claims

Cap imposed on holiday pay claims

BY Gerry O'Hare
Employment Law & HR
BG Purple

The UK Government is planning on introducing legislation imposing a cap on claiming backdated pay, including holiday pay. 

There will be a general limit on all unlawful deductions of wages claims, limiting backdated claims to two years prior to the date that the ET1 is lodged.  In addition, the legislation will make it clear that the right to paid holiday leave is not incorporated as a term in employment contracts.  The effect of this latter provision will be to remove any possibility of employees being able to claim backdated holiday pay.  Note, however, that the legislation will only apply to claims presented after 1st July 2015.

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