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Government tackles businesses’ concerns over holiday pay ruling

The Government has announced that it is taking action to reduce potential costs to employers and give certainty to workers on their rights following the recent EAT ruling in Bear v Fulton and two other co-joined cases, that holiday pay should reflect non-guaranteed overtime. According to the BIS press release, the Government recognises the decision of the court and is taking action to protect UK business from the potentially damaging impact of large backdated claims. Changes made to regulations under the Employment Rights Act 1996 will mean that claims to Employment Tribunals on this issue cannot stretch back further than 2 years. Workers can still make claims under the existing arrangements for the next 6 months which will act as a transition period before the new rules come into force. The changes apply to claims made on or after 1 July 2015.

 

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