Landmark Holiday Pay case concluded by UK Supreme Court
The long awaited decision from the Supreme Court in the case of Chief Constable of Police Service of Northern Ireland v Agnew and others [UKSC33] was passed down on the 04/10/2023.
In essence the case was about how to properly calculate holiday pay and how far back claims can go where the amount was miscalculated.
For Employers and Employees, the key take aways from this decision are as follows:
- That holiday pay should reflect normal pay, not basic pay. This includes, but is not limited to, factoring in any overtime etc that has been regularly worked and achieved.
- The period during which a claim can be brought before an Industrial Tribunal is three months from the date the last payment (deduction?) was made. Known as an unlawful deduction claim.
- Where there have been a series of unlawful deductions as a result of the incorrect application of holiday pay, the Supreme Court held that it would be unfair to restrict this to a period of three months or less between each deduction.
*** Please note that the above is in relation to holiday pay calculation, and it’s application to normal pay only***. Other unlawful deductions will be treated on a case by case basis, and will be considered on matters of fact***
For further information please contact our Workplace Information Service on 03300 555 300.