Holiday Pay Cases – Employer’s Liability
The recent case of Fulton and others v Scotland from the Employment Appeals Tribunal which will have a big impact on Employers when they are assessing possible liability. This judgement handed down confirmed that a break of 3 months breaks the chain in a series of deductions.
What does this mean?
If you have been underpaying employees on consecutive occasions when they have taken holiday, the employee can bring a claim stating each such occasion is linked and demand the employer repays all the amounts underpaid. This recent judgement means that if there is a break of 3 months or more from one holiday underpayment to another,then the chain will be broken and the employer will not be liable for such historic underpayment claims.