December 19, 2014

Government takes action to limit cost to businesses

Last month the Employment Appeal Tribunal (EAT) ruled that holiday pay should reflect non-guaranteed overtime.

The Government has pledged 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 two years.

Workers can still make claims under the existing arrangements for the next 6 months which will act as a transition period before the new rules come into force. The changes apply to claims made on or after July 1st, 2015.

Following the recent Employment Appeal Tribunal ruling, the outcome is this action announced today to try and limit the potentially devastating effects on employers of the risk of unlimited back dated holiday claims. Government set up a taskforce of representatives from government and business to assess the financial exposure employers face and how to limit the impact on businesses.

For full information on holiday pay claims, contact the Royds employment team today

Share on:

Your Comments

Leave a comment

Thank you for choosing to leave a comment. Please keep in mind that comments are moderated. Please do not use a spammy keyword or a domain as your name or it will be deleted.