There are many who will breath a collective sigh of relief if the Government introduces Regulations to limit the back pay claims for holiday pay to no more than 2 years. The changes are to apply to claims made on or after 1st July 2015.
As the limitation on claiming back pay is likely to be one of the areas for appeal in the Employment Appeals Tribunal case, this is likely to be welcomed by employers.
The government recognises the decision of the court and is today 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.