{"id":24172,"date":"2023-10-25T15:15:33","date_gmt":"2023-10-25T15:15:33","guid":{"rendered":"https:\/\/www.moorethompson.co.uk\/?p=24172"},"modified":"2023-10-25T15:15:33","modified_gmt":"2023-10-25T15:15:33","slug":"protection-for-holiday-pay-claims-as-supreme-court-upholds-landmark-decision","status":"publish","type":"post","link":"https:\/\/www.moorethompson.co.uk\/mt-pay\/payroll-press-articles\/protection-for-holiday-pay-claims-as-supreme-court-upholds-landmark-decision\/","title":{"rendered":"Protection for holiday pay claims as Supreme Court upholds landmark decision"},"content":{"rendered":"

The Supreme Court has ruled in favour of a tribunal that awarded over 3,700 staff at the Police Service of Northern Ireland (PSNI) holiday pay dating back to 1998, upheld in the Court of Appeals in 2019.<\/p>\n

Under the Employment Rights Act 1996, workers whose holiday pay has been wrongfully deducted may link instances of underpayment dating back two years.<\/p>\n

The ruling states that a gap of three months or more does not constitute a break in this chain of deductions. Therefore, workers can submit a single claim for all deducted holiday pay within a two-year period.<\/p>\n

Previously, a gap of three months or more constituted a break in the chain of deduction, meaning that workers had to file a claim for each instance separately.<\/p>\n

What does this mean for your business?<\/h5>\n

In practice, the ruling means that employees can reclaim underpayments over a longer period of time \u2013 provided there is a pattern of incorrectly calculating holiday pay \u2013 making it far easier to resolve unlawful deductions for up to two years.<\/p>\n

As a result, businesses may now face large liabilities for unlawful deductions.<\/p>\n

It all comes down to how you calculate holiday pay and deductions.<\/p>\n

While some businesses are unlikely to face difficulties, the ruling could spell financial and legal trouble if you employ flexible workers or offer overtime payments.<\/p>\n

Without the right expertise in your team, it\u2019s easy to miscalculate holiday pay on non-standard contracts, variable hours or fluctuations in rate of pay.<\/p>\n

In this case, PSNI faces the \u00a340 million financial burden of an ongoing calculation error.<\/p>\n

We can help you get it right.<\/p>\n\n\n\n
OUR SERVICES<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
Your HR, simplified<\/h5>\n

Our end-to-end solution helps you make HR simple. Through our expert team, we provide tailored support for payroll, holiday pay and other absences, and flexible working requirements.<\/p>\n

Investing in effective, professional HR services is a must, to keep your business protected as the law continues to change around flexible working. Please contact us to find out how we can help you do HR, the right way.<\/p>\n\n\n\n
CONTACT US<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

The Supreme Court has ruled in favour of a tribunal that awarded over 3,700 staff at the Police Service of Northern Ireland (PSNI) holiday pay dating back to 1998, upheld in the Court of Appeals in 2019. 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