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Holiday Pay

Holiday Pay

Holiday pay and non-guaranteed overtime – new rules to protect business come into force in July.

At the end of last year the Employment Appeal Tribunal ruled that holiday pay should reflect non-guaranteed overtime. While this might have been a boost for workers’ rights, the ruling presented a serious financial risk to UK businesses if they had to face large backdated claims. Following the Tribunal ruling, the Government set up a taskforce of representatives to assess the level of financial exposure faced by employers in the UK.

As a result, the Government took action to reduce potential costs to employers. Changes made to regulations under the Employment Rights Act 1996 will mean that claims to Employment Tribunals on this issue cannot stretch back further than two years.

There has been a transition period and workers are still able to make claims under the existing arrangements until the end of June this year. However, after that, the new rules with the two year limit come into force. The changes apply to claims made on or after 1 July 2015.

For more information about this or any other aspect of employment law, please contact Chris Wiper on 10325 466461 or email him chris.wiper@close-thornton.co.uk

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