Financial & Legal News

Pearson Solicitors Welcomes Holiday Pay Ruling

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Oldham-based law firm, Pearson Solicitors, has welcomed a Government ruling to enforce a two-year limit on claims from employees for backdated holiday pay.

The Deduction from Wages (Limitation) Regulations 2014 removes concerns raised last month when the employment appeals tribunal ruled in the Bear Scotland case that regular overtime should be taken into consideration when calculating holiday pay. The news struck fear amongst employers concerned about a wave of backdated claims.

Following the Bear Scotland ruling, a taskforce was set up comprising of representatives from government and business to look into limiting the effect on business.

The new legislation means that claims made from 1 July 2015 cannot be backdated longer than two years, limiting the potential cost to employers.

Susan Mayall, head of employment at Pearson Solicitors commented: “In the wake of the tribunal ruling last month it was feared that employers across the country could be liable for billions of pounds in backdated claims, having widespread implications for business.

“This new legislation removes this fear, giving clear guidance both to employers and their staff on the financial implications and rights around holiday pay relating to overtime.”



Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.

This blog was posted some time ago and its contents may now be out of date. For the latest legal position relating to these issues, get in touch with the author - or make an enquiry now.

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