New regulations set to place a cap on holiday pay claims

By Linder Myers

24 Jun 2015

New employment regulations coming into effect from 1st July 2015 will limit the scope of backdated holiday pay claims to two years prior to the date that a claim is lodged at an employment tribunal.

This is a positive move for SMEs, say specialists at Linder Myers Solicitors.

The new cap, under the Deduction from Wages (Limitation) Regulations 2014, follows the landmark decision last year which ruled that UK Regulations were out of line with EU law meaning that workers who were paid regular overtime and commission rates should receive more than their basic rate of pay during annual leave.

Alan Lewis, head of employment at Linder Myers Solicitors said: “Following the landmark ruling last year, the CBI estimated that the cost to businesses in the UK for backdated holiday pay could have run into billions of pounds.

“The new cap is good news for employers, particularly SMEs and owner managed businesses who previously could have faced significant financial consequences with claims potentially dating as far back as 1998. The two year limit will be welcomed by employers operating in sectors where workers are required to regularly work on an overtime or commissions basis.” The holiday pay ruling only applies to the minimum four weeks’ holiday required by EU law and not to the additional 1.6 weeks provided by UK regulations or any holiday above 5.6 weeks that is provided in the employment contract. Employers may also avoid costly retrospective claims if they can establish a gap of more than three months between successive underpayments of holiday pay.

Enjoyed this? Read more from Linder Myers

Latest news

1

Panache Cruises makes key hire ahead of Australian launch Julliana Nasmith and James Cole

Panache Cruises makes key hire ahead of Australian launch

12 Mar 2026

2

Blackburn bids to become the UK’s first Town of Culture Blackburn Town of Culture bid taken by Robin Zahler

Blackburn bids to become the UK’s first Town of Culture

12 Mar 2026

3

New chapter for Guy’s Thatched Hamlet after Bowland Inns and Hotels acquisition Thatched Hamlet Terrace at Guys

New chapter for Guy’s Thatched Hamlet after Bowland Inns and Hotels acquisition

11 Mar 2026

4

Heritage manufacturers embrace digital technology with Made Smarter Siddique Rasul digital project manager and Steve Allen of Darwen Terracotta

Heritage manufacturers embrace digital technology with Made Smarter

11 Mar 2026

5

BAE reaches pay deal with striking workers Typhoon production Warton

BAE reaches pay deal with striking workers

11 Mar 2026

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV127 March/April Magazine Networking Event
Jan/Feb Networking Event - Closer up
Networking
19 Mar 2026

LBV127 March/April Magazine Networking Event

Salmesbury Hall, Preston New Road, Lancashire, PR5 0UP

08:30 - 10:30

AI & Cybersecurity Summit
AI and Cybersecurity Logo
Summit
28 Apr 2026

AI & Cybersecurity Summit

Dunkenhalgh House , Blackburn Road, Clayton Le Moors, BB5 5JP

08:30 - 11:00

Sub36 Networking - Outdoor Elements
Sub36
Networking
29 Apr 2026

Sub36 Networking - Outdoor Elements

Outdoor Elements, Pump House Dean Wood, Trapp Lane, Burnley, BB12 7JD

09:00 - 11:00

LBV Magazine Networking Events - SAVE THE DATES
Jan/ Feb Networking Event - Talking
Networking
14 May 2026

LBV Magazine Networking Events - SAVE THE DATES

Lancashire

08:30 - 10:30

Payroll Update 2026 Red Hall Hotel
Payroll calculator new.jpg.jpg
LBV Hub Seminars
13 Mar 2026 - 13 Mar 2026

Payroll Update 2026 Red Hall Hotel

Red Hall Hotel, Bury, BL9 5NA

08:00 - 10:00

Chamber Business Lunch with guest speaker – John Pye, Eden Project Morecambe
Logo.jpg.jpg
LBV Hub Dinners / Balls
13 Mar 2026 - 13 Mar 2026

Chamber Business Lunch with guest speaker – John Pye, Eden Project Morecambe

Morecambe Football Club, Morecambe, LA4 4TB

11:00 - 14:00

Could your business be a King’s Award winner?
King's Cross Awards
LBV Hub
18 Mar 2026

Could your business be a King’s Award winner?

11 Victoria Street, Preston, Lancashire, PR1 7QS

16:00 - 18:00

Preston Freelancer Meet-Up and Coworking Day: March
March Freelancer Square.png.png
LBV Hub Networking
19 Mar 2026 - 19 Mar 2026

Preston Freelancer Meet-Up and Coworking Day: March

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 12:00

The Business Network Central and East Lancashire
LBV Header (30).png.png
LBV Hub Networking
19 Mar 2026 - 19 Mar 2026

The Business Network Central and East Lancashire

Barton Manor, Preston, PR3 5AA

11:30 - 14:15

Exploring Debt Finance: Unlocking SME Growth
LCC Event Logos
LBV Hub Exhibitions
24 Mar 2026

Exploring Debt Finance: Unlocking SME Growth

Farleys Solicitors, 3 Mead Way, Shuttleworth Mead, Padiham, Burnley, BB12 7NG

09:00 - 12:00

The Marketing Meetup Lancashire
TMM Lancs - 27th Jan.jpg.jpg
LBV Hub Networking
25 Mar 2026 - 25 Mar 2026

The Marketing Meetup Lancashire

Six Connections, One Slater Terrace, Burnley, BB11 1BU

18:00 - 20:00

Invest in Pendle: A Live Celebration Event
Northlight photograph
LBV Hub
25 Mar 2026

Invest in Pendle: A Live Celebration Event

The Leisure Box, Northlight Mill, Glen Way, Nelson, BB9 5NH

12:00 - 14:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin