Thousands of low-paid workers could get £1,000s back after landmark holiday pay ruling – check if you can claim
THOUSANDS of low-paid British workers could be owed compensation after a successful landmark holiday pay ruling.
Trade union Unison says the decision affects other types of employee payment deductions and is a “victory for underpaid workers” after the Supreme Court decision this week.
The ruling saw 3,700 Police Service of Northern Ireland (PSNI) employees win back underpayments for holiday pay going as far back as 1998.
It follows a long-running employment tribunal which began in 2018.
And Jo Moseley, an employment lawyer at national firm Irwin Mitchell, said: “This court ruling is a big win for UK workers.
“It means that if they have been consistently underpaid holiday, they can now claim back the money they should have received.
“Previously employers were able to use complicated legal arguments which, in many cases, meant that they recovered less than a year’s losses.
“However, legislation that the government introduced in 2015 means that workers can only recover losses of up to two years in England, Wales and Scotland – even where their losses go back much further than this.”
Before the ruling workers who consistently received incorrect pay could only make a claim at an employment tribunal for the most recent underpayment.
They could include similar underpayments on previous occasions, but not if there was a gap of three or more months between them.
But the ruling now means that workers will now be able to challenge ongoing linked underpayments in their wages.
They will be able to do this even if there is a gap of three months or more since the last time this happened, says Unison.
The judgment in Chief Constable of the Police Service of Northern Ireland and another v Agnew and other & UNISON essentially overrules holiday pay case law operating since 2015.
Nicholas Le Riche, from the law firm BDB Pitmans, said: “Organisations in England, Wales and Scotland will be able to rely on the two-year limit on how far back unlawful deduction from wages claim can go, but even so this decision still has the potential to cost UK businesses millions of pounds.”
The PSNI case began in 2015 when police officers and civilian staff brought claims because their holiday pay was equivalent to their “basic pay”, without reference to the overtime they regularly worked.
Commenting on the ruling, Shantha David, Unison’s head of legal said: “Unison’s intervention has ensured the law has now been corrected.
“The previous interpretation meant workers couldn’t get compensation where a series of similar underpayments had happened three or more months apart.
“The Supreme Court understood here that this could allow some employers to game the system by spacing out holiday payments over more than three months.
“For years, many workers have been denied unfairly the chance to have their legitimate claims heard.
“This judgment ensures they’ll get all the wages they’re rightfully owed.”
How do I claim?
If you think you’ve been treated unfairly or suffered from unfair pay deductions you should make a claim to an employment tribunal.
You can make a claim if someone has treated you unlawfully, such as your employer, a potential employer or a trade union.
Unlawful treatment can include:
- Unfair dismissal
- Discrimination at work
- Breach of contract
- Unauthorised deductions from your pay
The tribunal is independent of the government.
If your claim is about discrimination or a dispute over pay, the three-month period begins when the incident or dispute happened.
Before you make a claim to an employment tribunal, you must contact Acas (Advisory, Conciliation and Arbitration Service).
The time limit for making a claim is put on hold while Acas helps you with your dispute.
You must tell Acas that you intend to make a claim to the tribunal.
You’ll be offered the chance to try and settle the dispute without going to a tribunal by using Acas’s free “early conciliation” service.
If early conciliation does not work, Acas will send you an early conciliation certificate – one for each respondent. Use these when you make a claim to the tribunal.
Once you receive your certificates, you’ll have at least one month left to make your claim.
You do not have to pay a fee to make a claim to an employment tribunal.
Employees can make a claim on the government website.
The respondent usually has to reply to your claim in writing within 28 days of getting your claim form. They will give their side of the case.
Once they’ve replied, the tribunal will decide whether there will be a full hearing to decide on your case.
If they do not reply, the tribunal may decide on your case without you having to go to a hearing.
Employees also have a right to seek independent legal advice at any time.