The Employment Appeal Tribunal has ruled that, where a worker has taken a period of unpaid holiday, they will not be entitled to a backdated payment for it (or any earlier periods) if they do not submit a claim within a three-month limitation period after the claim has arisen. This case provides welcome clarity for employers, following the uncertainty created by a European Court of Justice ruling, on the holiday payments for which workers are entitled to claim.
With Black Lives Matter (BLM) protests taking place across the United Kingdom and worldwide, many businesses have publicly stated their commitment to equality and the BLM movement. However, what happens when the experience of current or former black, Asian and minority ethnic employees is alleged not to live up to that standard? Employers must find ways to address such complaints and take appropriate action where needed.
The Court of Appeal has held that holiday entitlement and pay for workers on permanent contracts should not be prorated to reflect the fact that they work on a part-year basis. In light of this decision, employers using set percentages to calculate holiday pay should consider auditing their workers on permanent contracts to ensure that these fixed rates do not result in them receiving less than their statutory entitlement.