In the case of the Chief Constable of the Police Service of Northern Ireland & PSNI another v Agnew & others, on the 4th of October, it was ruled that a break of 3 months between incorrect holiday payments does not “break the chain” of underpayments of holiday pay.
The Supreme Court ruled that the police officers’ claims for underpaid holiday pay are not limited to deductions only for the period of three months leading up to the presentation of their claims to the employment tribunal. It was also decided that a relevant “series” for the purposes of a claim of unlawful deductions is not broken by a three-month gap between incorrect payments (or deductions) of holiday pay.
This decision is likely to mean more holiday pay claims for employers, considering it was previously believed that if the employee had been paid correctly for three months or more, they weren’t able to look back earlier than those three months to claim unpaid holiday pay. Similarly, most staff had been paid holiday pay based on their basic pay as opposed to their normal pay (which would include overtime amongst other payments).
Cases like this highlight the importance of employers correctly calculating and managing holiday pay, reviewing employment contracts, and seeking external guidance to ensure all policies and practices are up to date.
We are helping employers evaluate the risk of a claim by cross checking calculations and payments. We are then assisting with the implementation of new calculations and policies, whilst carefully managing and minimizing existing liabilities.
If you’re interested in how we can help your business regarding holidays, employment contracts and policies, please get in touch with us for an initial conversation. Call us at 0333 888 1360, or contact us via email at [email protected]
You can read further case details here: https://www.supremecourt.uk/cases/uksc-2019-0204.html
