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The Government has taken action to reduce the potential costs to employers of last month's decision of the Employment Appeal Tribunal in Bear Scotland Ltd. v Fulton that holiday pay should reflect non-guaranteed overtime that is routinely worked.
The Deduction from Wages (Limitation) Regulations 2014, which came into force on 8 January 2015, make changes to the Employment Rights Act 1996 and the Working Time Regulations 1998 so as to limit Employment Tribunal (ET) claims on this issue to the two-year period before the date on which the employee's ET1 claim for unlawful deduction of wages is lodged. There is to be a transitional period before the new rule is introduced. It will only apply to complaints presented to the ET on or after 1 July 2015.
The Regulations also state that the right to payment in respect of annual leave is not intended to operate in such a way so as to provide that right under a worker’s contract. It is a separate statutory right.