Government limits impact of holiday pay ruling

18 December 2014

The government has taken action to reduce potential costs to employers and give certainty to workers on their rights following the recent court decisions on holiday pay. This follows the Employment Appeal Tribunal ruling that holiday pay should reflect non-guaranteed overtime.

The announcement says that the Government recognises the decision of the court and is taking action to protect UK business from the potentially damaging impact of large backdated claims. 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 2 years.

CIPP comment The CIPP has been involved in the task force discussions which have led to this announcement, and welcomes the certainty that this will now give to employers and their agents and bureaux. We recommend the new CIPP training course on holiday pay and leave which will give members the up-to-date detail on this issue.