The Department for Business has provided greater clarity on the ongoing legal issues surrounding backdated holiday pay, tabling regulations to introduce a two year limitation on how far back a claim for deduction from wages can go.
ACS Chief Executive James Lowman said: “We welcome the Government's announcement, which starts to provide clarity for retailers who may be affected by claims. Some retailers will be affected by the ruling that overtime should be included in holiday pay calculations, but these regulations will limit the bureaucratic burdens faced by retailers who had feared they would have to investigate cases dating back many years to resolve claims.
"We have been working closely with the Department for Business Innovation and Skills, providing them with information on holiday pay in convenience stores and explaining the potential impact on business owners. We will continue to ensure that local shop owners' concerns are understood as we move towards greater clarity on this issue."
The limitation will apply to claims presented at an Employment Tribunal on or after 1 July 2015.
ACS has a legal helpline available for any members that have concerns about the announcement. For more information, please contact the office on 01252 515001.
