Two year limit for Holiday Pay

Action has been taken by the government to protect employers over Holiday Pay. The initial ruling in October 2014 was that holiday pay should be paid on non guaranteed overtime as well as standard contracted hours.

However the new rules that will be implemented in July 2015 will limit claims to no further back than two years. The government have made this amendment to protect companies from large backdated claims.

Workers can still make claims under the initial ruling for the next 6 months until the new rulings are implemented.

Employer groups have welcomed this news claiming it will, “go some way to limiting risk for businesses”.

However unions are extremely unhappy with the change. Frances O’Grady, the general secretary of the trade union congress feels the move is a “blatant attempt to water down the tribunal ruling”.