Government moves to limit unlawful deductions claims
Friday 19th December 2014
Following the recent EAT holiday pay decision in Bear Scotland, the Government has now announced it will legislate to limit backdated claims. The Deduction from Wages (Limitation) Regulations 2014 will come into force on 5 January 2015.
From 1 July 2015 onwards, an unlawful deductions claim will only be able to count back a maximum of 2 years from the last deduction. In addition, Bear Scotland introduced a rule for holiday pay cases requiring a gap of no more than 3 months between each deduction in a series.
All information in this update is intended for general guidance only and is not intended to be comprehensive, or to provide legal advice.