8th January 2015



 Issue No.  2015/01




2015 already!  It is hard to believe that it is over 15 years since we were all preparing for the end of the world due to the millennium bugs causing computers to stop working in the year 2000!  Where does the time go?  They say time flies when you’re having fun! 

We wouldn’t necessarily describe Health and Safety, Food Safety and/or Employment Law as ‘fun’ but it can be a bit of a ‘rollercoaster’ at times.  Lets kick off 2015 with a regular ‘pot boiler’ topic…   

HolidayPay Issues

In 2014, the ‘rollercoaster’ was various judgments from the Europe and the UK appeal courts surrounding holidays and the calculation of holiday pay. You may remember our Information Update (2014/14) on holiday pay following the judgment of the Employment Appeal Tribunal, which determined that non-contractual overtime should be included in the calculation of holiday pay. 

Whilst the widely held view amongst legal commentators is that the judgment is flawed, and that the decision may subsequently be reversed by the Court of Appeal/Supreme Court, the Government introduced legislation to deal with one specific aspect of the holiday pay debacle!

The specific issue is that workers could potentially seek to recover the ‘series of underpayments’ to their previous holiday pay payments potentially going back to when they joined their current employer.  Of course claims cannot be made that pre-date 1998 when the Working Time Regulations came into effect.  The EAT judgment included a point that claims for arrears of holiday pay will be out of time if there has been a break of more than three months between successive underpayments (subject to the reasonable practicability test).

Deduction from Wages (Limitation) Regulations 2014

Notwithstanding this point, if there has been no break of more than 3 months between successive underpayments, the worker could seek to recover the underpayment of holidays going back years! To prevent employees making claims going back to 1998, the Government has laid before Parliament (on 18th December), the Deduction from Wages (Limitation) Regulations 2014 which seeks to limit all unlawful deductions claims to two years before the date the claim is lodged.

The government has said the aim of this Statutory Instrument is to curb the potentially damaging costs for employers, BUT the problem is that whilst the Statutory Instrument comes into force on 8th January 2015, this limiting piece of legislation will only apply to Tribunal claims presented on or after 1st July 2015. 





Employment Law
Health & Safety
Personnel / HR
Food Safety
Food Hygiene
Management Training







Making sense of it all


Sentient - Training


Sentient adj ...

"capable of perception"

"capable of independent thought"


Can we help you?
If you think so, please contact us at advice@sentientuk.co.uk or call UK 08456 446006

To subscribe for these E-mails click here or to access our archive of previous E-mail Updates please click here.  

Click here for details of the services available on our website. 

Our current Open Course Training Programme is available to view here

Follow us on Twitter @SentientUk

The advice and comment in this update is not meant to be an authoritative statement of law. The articles and summaries should not be applied to any specific set of facts and circumstances without seeking further advice. Whilst every care is taken to ensure that the content is correct Sentient cannot accept responsibility for the accuracy of statements made nor the result of any actions taken by individuals after reading such.

To unsubscribe to this information newsletter please click here and complete the unsubscribe form on our site.
Warning do not click this link unless you wish to be removed from this update newsletter.