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

Swim school makes splash with double award success Jo Gribben

Swim school makes splash with double award success

26 Jun 2026

2

BAE Systems donates £50,000 to support Armed Forces community Blackpool Football Club gets support from BAE Systems

BAE Systems donates £50,000 to support Armed Forces community

26 Jun 2026

3

Landmark moment for Eden Project Morecambe Landmark moment for Eden Project

Landmark moment for Eden Project Morecambe

25 Jun 2026

4

Preston consultancy joins growing national group Senior Representatives From Enevo And Aegis

Preston consultancy joins growing national group

25 Jun 2026

5

Chamber chief to step down Miranda Barker

Chamber chief to step down

23 Jun 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
LBV129 July/August Magazine Networking Event
Nov/Dec Networking Event
Networking
16 Jul 2026

LBV129 July/August Magazine Networking Event

Brysdales, Britannia Buildings Drumhead Road, Chorley, PR6 7BX

16:00 - 18:00

LBV130 September/October Magazine Networking Event
Jan/Feb Networking Event - Entrance
Networking
17 Sep 2026

LBV130 September/October Magazine Networking Event

The Beehive Blackburn, Shadsworth Business Park, BB1 2Q

08:30 - 10:30

LBV131 November/December Magazine Networking Event
Jan/ Feb Networking Event - Talking
Networking
19 Nov 2026

LBV131 November/December Magazine Networking Event

Lancashire

08:30 - 10:30

How hackers target SMEs - and how to protect your business
Lancashire_gamesdesign_Feb26-2120.jpg.jpg
LBV Hub Seminars
02 Jul 2026

How hackers target SMEs - and how to protect your business

Engineering Innovation Centre, Preston, PR1 2XS

09:30 - 11:30

Chamber Breakfast Networking - July
LBV Hub Networking
02 Jul 2026

Chamber Breakfast Networking - July

The Longlands Hotel, Carnforth, LA6 1JH

08:00 - 10:00

The AI Lab: Marketing Multiplier
Event post 03.07.png.png
LBV Hub Seminars
03 Jul 2026

The AI Lab: Marketing Multiplier

Door4, Burnley Wharf, Manchester Road, Burnley, BB11 1JG

09:00 - 11:30

Society1 Breakfast Social and Coworking Day
LBV Hub Networking
09 Jul 2026

Society1 Breakfast Social and Coworking Day

Society1, Coworking Space, Preston, PR1 3LT

09:00 - 17:00

Clubhouse Business Network sponsored by Orca Finance - July 2026
padel-networkpng.png.png
LBV Hub Networking
09 Jul 2026 - 09 Jul 2026

Clubhouse Business Network sponsored by Orca Finance - July 2026

Clubhouse, Blackburn, BB1 3NT

14:00 - 16:00

Chamber Summer BBQ
LBV Hub Social
09 Jul 2026

Chamber Summer BBQ

The Borough , Lancaster, LA1 1PP

17:30 - 20:00

July Preston Tech Connection Hot Takes
PTC Square July (900 x 900 px).png.png
LBV Hub Networking
15 Jul 2026

July Preston Tech Connection Hot Takes

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:03

Preparing for the changes to unfair dismissal
Logo.jpg.jpg
LBV Hub Seminars
15 Jul 2026

Preparing for the changes to unfair dismissal

The Longlands Hotel, Carnforth, LA6 1JH

08:00 - 10:00

Health Live
Logo.jpg.jpg
LBV Hub Exhibitions
16 Jul 2026

Health Live

Lancaster & Morecambe College, Lancaster, LA1 2TY

10:00 - 15:00

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