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Unlawful deduction claims before 1 July 2015 not subject to any limitation period

Makbool Javaid

The Deduction from Wages (Limitation) Regulations 2014 impose a 2-year limitation period on compensation for claims of unauthorised deduction from wages presented on or after 1 July 2015. In Coletta v Bath Hill Court (Bournemouth) Property Management Ltd, an ET upheld Coletta’s (C) 2014 claim that his employer had failed to pay him at the correct national minimum wage rates, but rejected his argument that he should be compensated for the 15 years of underpayment as the Limitation Act 1980 meant C could only recover sums going back six years. The EAT upheld C’s appeal. The ET had erred in its interpretation of the Limitation Act. C had brought his claim within 3 months of the last of the deductions and so was entitled to recover the amounts that he should have been paid, without the imposition of a back stop of six years. Note that the 2014 Regulations could be challenged as the ECJ’s ruling in the King v Sash Windows case allows for recovery of 13 years’ unpaid holiday pay.

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