[UK] Holiday pay ruling entitles many workers to get back ‘unfairly’ deducted pay

Unison has announced that many workers in the UK could be entitled to thousands of pounds “unfairly” deducted from their pay following a Supreme Court decision, The Guardian reports.

The judgment relates to a long-running row about holiday pay however Unison, which participated in the case, has stated that the ruling affects all other types of payment to employees and called it a “victory for underpaid workers".

In 2018, an employment tribunal ruled that unlawful deductions were made from the holiday pay of more than 3,700 Police Service of Northern Ireland (PSNI) officers and civilian staff over a period of 20 years. The case has since been working its way through the legal system.

The PSNI reportedly accepts that the claimants were underpaid but disputed the period of time for which they were entitled to recover sums they should have been paid. The supreme court unanimously dismissed the force’s appeal meaning that it will have to hand over about £40m in holiday pay to staff.

Unison said that the previous interpretation of the law meant workers had been missing out on money they were rightfully owed. Before the PSNI ruling, workers who consistently received incorrect pay could make a claim at an employment tribunal for only the most recent underpayment. They could reportedly include similar underpayments on previous occasions but not if there was a gap of three or more months between them.

The new judgment means many workers will be able to challenge underpayments in their wages even if there is a big gap since the last time this happened, the union said.

Unison added that while the case focused on holiday pay, “the issue affects any employee and applies to claims on all forms of wages”.

For holiday pay, commission and bonuses, legislation in Great Britain (but not Northern Ireland) means individuals can only go back up to two years when it comes to claims for unlawful deduction from wages.

However, Unison reportedly said that for other payments - including statutory sick pay, statutory maternity, paternity and adoption pay, and time off for union duties - the claim can now go back to when the underpayment first began.

Shantha David - Unison’s head of legal - said that for years many workers had been treated unfairly but “this judgment ensures they will get all the wages they are rightfully owed”.

Jo Moseley - a member of the law firm Irwin Mitchell’s employment team - told The Guardian, “Today’s ruling is of major significance and has the potential to cost UK businesses millions of pounds.”

She added that “many businesses will be concerned”, and stated that some would have to pay their staff “a substantial amount” to settle their cases.

Source: The Guardian

(Links and quotes via original reporting)

Unison has announced that many workers in the UK could be entitled to thousands of pounds “unfairly” deducted from their pay following a Supreme Court decision, The Guardian reports.

The judgment relates to a long-running row about holiday pay however Unison, which participated in the case, has stated that the ruling affects all other types of payment to employees and called it a “victory for underpaid workers".

In 2018, an employment tribunal ruled that unlawful deductions were made from the holiday pay of more than 3,700 Police Service of Northern Ireland (PSNI) officers and civilian staff over a period of 20 years. The case has since been working its way through the legal system.

The PSNI reportedly accepts that the claimants were underpaid but disputed the period of time for which they were entitled to recover sums they should have been paid. The supreme court unanimously dismissed the force’s appeal meaning that it will have to hand over about £40m in holiday pay to staff.

Unison said that the previous interpretation of the law meant workers had been missing out on money they were rightfully owed. Before the PSNI ruling, workers who consistently received incorrect pay could make a claim at an employment tribunal for only the most recent underpayment. They could reportedly include similar underpayments on previous occasions but not if there was a gap of three or more months between them.

The new judgment means many workers will be able to challenge underpayments in their wages even if there is a big gap since the last time this happened, the union said.

Unison added that while the case focused on holiday pay, “the issue affects any employee and applies to claims on all forms of wages”.

For holiday pay, commission and bonuses, legislation in Great Britain (but not Northern Ireland) means individuals can only go back up to two years when it comes to claims for unlawful deduction from wages.

However, Unison reportedly said that for other payments - including statutory sick pay, statutory maternity, paternity and adoption pay, and time off for union duties - the claim can now go back to when the underpayment first began.

Shantha David - Unison’s head of legal - said that for years many workers had been treated unfairly but “this judgment ensures they will get all the wages they are rightfully owed”.

Jo Moseley - a member of the law firm Irwin Mitchell’s employment team - told The Guardian, “Today’s ruling is of major significance and has the potential to cost UK businesses millions of pounds.”

She added that “many businesses will be concerned”, and stated that some would have to pay their staff “a substantial amount” to settle their cases.

Source: The Guardian

(Links and quotes via original reporting)