ACAS update guidance on Holiday Pay calculations

30 June 2015

1 July 2015 will see a two year cap being placed on all claims that are brought now for backdated deductions from wages for holiday pay as a result of the introduction of The Deduction from Wages (Limitation) Regulations 2014. This means that the period that the claim can cover will be limited to a maximum of 2 years.

Anyone who wished to bring a claim ahead of the introduction of the two year cap would have needed to have obtained an early conciliation certificate and presented the ET1 claim form to a tribunal on or before the 30 June 2015.

The updated ACAS guidance on holiday pay does not refer to the recent ruling of the Northern Ireland Court of Appeal in Patterson v Castlereagh Borough Council that has held that there is no reason in principle why voluntary overtime should not be included in holiday pay, if it is normally carried out and is an "appropriately permanent feature" of the worker's remuneration.