Government takes action to protect UK businesses over holiday pay ruling

The government has recently taken action to minimise the potentially damaging impact of the latest ruling that holiday pay should reflect non-guaranteed overtime, by introducing new legislation.

The Deduction from Wages (Limitation) Regulations 2014 was laid before Parliament on 18 December 2014.  This:
The aim of this legislation is to reduce the potential costs to employers and provide clearer guidelines to employees over their holiday pay rights.

It is worth noting, however, that the new Regulations do not come into force until 1 July 2015, and therefore only apply to claims made on or after this date. This means that employers should be aware of the possibility that employees may still make claims under the existing arrangements until next summer.
For more information on the impact of the recent holiday pay ruling, ACAS provide useful guidance which can be accessed here.
CĂ©line Hargreaves