Unlawful Deductions claims to be limited to two years

Following the EAT's decision in Bear Scotland regarding the calculation of holiday pay, the Government has issued Regulations which will come into force on 8 January 2015 and be effective for claims made on or after 1 July 2015.

The Deductions from Wages (Limitation) Regulations 2014 will limit claims for back pay to two years from the date the complaint is presented.  The Regulations made amend the Employment Rights Act 1996 and the Working Time Regulations 1998 (WTR) so as to limit claims for holiday pay as well as any fee, bonus commission or other emolument whether payable under the contract or otherwise.  The amendment to the WTR also prevents employees from pursuing their holiday pay claims as a breach of contract.  

The Government announcement is here.