Holiday Pay – Limit on Claims

Louise Walker
Louise Walker
Legal Director
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The Deduction from Wages (Limitation) Regulations 2014 came into force on 1 July 2015. The primary aim of the Regulations is to limit the impact on businesses of recent case law in relation to holiday pay and they apply to claims presented on or after 1 July 2015.

With effect from this date, a claimant is only able to claim compensation in respect of unlawful deductions from wages for a period of up to 2 years. Claims in respect of any deductions made more than two years before the tribunal claim was made will no longer be competent.

Whilst the Regulations apply in relation to holiday pay, as most holiday pay claims are brought as unlawful deductions from wages claims, they apply equally to any other deductions from wages claims that employees might bring in the employment tribunal. In some cases, however, where a wages claim can be based on a right contained in a contract of employment, claims may still be able to go back for five years in Scotland or six years in England.

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