From today 1 July 2015 employees will only be able to backdate claims for unlawful deductions from wages for a maximum of two years.

This change came about due to fears that a high number of claims may be made for backdated holiday pay trailing back for a number of years following the recent cases about what should be included in holiday pay. Cases have led to the need to include regular non-guaranteed overtime and commission in holiday pay calculations.

Furthermore for an employee to show a series of unlawful deductions over a two year period, there cannot be more than a three month break in the chain of underpayments.

So in the case of holiday pay, even if a claim was successful in asserting that this was underpaid, if there was more than three months between successive holiday dates / payments, the chain of events for backdating the pay would be broken and put a stop on how far back the claim could be backdated.

 

Free eBook!

Simply provide your details to receive your free ebook '7 Questions For Sure-fire Success As An Employer'. You will then receive important legal updates, HR tips and important news right into your inbox.

By the way, we can't stand spam so be assured that we will never share your information. 

You have Successfully Subscribed!