Acas uses cookies to ensure we give you the best experience and to make the site simpler. Find out more about cookies.

Website URL :

Acas statement on new regulations following November's holiday pay ruling

Thursday 18 December 2014

On 4 November, the Employment Appeal Tribunal (EAT) ruled that holiday pay should reflect non-guaranteed overtime. Non-guaranteed overtime is where there is no obligation by the employer to offer overtime but if they do then the worker is obliged by their contract to work that overtime.

The Government set up a taskforce to consider the possible impact of the EAT's ruling on holiday pay. Regulations have been laid today to limit claims for unlawful deductions from wages to two years. The rules apply to Employment Tribunal claims made on or after 1 July 2015.

Acas spokesperson said:

"The Government has introduced some new regulations today following November's pay ruling on holiday pay.

"The new rules puts a two year backdate limit for affected workers who wish to make a tribunal claim for underpaid holiday pay from 1 July 2015. For further information, please see our updated guidance on holiday pay for employers and employees:"