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22-12-2014

The government has introduced the Deduction from Wages (Limitation) Regulations 2014.

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They do two things:

  1. limit all unlawful deductions claims to two years before the date the ET1 is lodged; and,
  2. explicitly state that the right to paid holiday is not incorporated as a term in employment contracts.

Clearly this is intended to remove any chance employees have of bringing long-term claims for back holiday pay, either in the tribunal or civil courts.

The new regulations will not apply to ET1s lodged before 1 July 2015.

Those of you who remember the recent cases on holiday pay will know that the EAT already limited the right to arrears of holiday pay by stating that such arrears could only be claimed where a period of less than 3 months had elapsed from the last unlawful deduction.

Importantly, the EAT curtailed the right to back date claims by holding that any series of deductions punctuated by a gap of more than 3 months extinguished the tribunal's jurisdiction to consider the complaints that it was unpaid.

 

This is intended for general information only and should not be considered as giving advice in relation to any individual case nor be taken as applying to any particular case. No liability is accepted for any such use of the information contained.

TESTIMONIALS

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