04/11/2014
Holiday Pay Rulings 'Cause For Concern' - NIIRTA
The Northern Ireland Independent Retail Trade Association (NIIRTA) has described as "a cause for concern" recent judgements from the European and domestic courts that holiday pay should be based on average actual earnings and not just basic pay.
The Employment Appeals Tribunal in the UK has ruled today that this also includes overtime payments.
NIIRTA Chief Executive Glyn Roberts said: "It is not clear if and how employees could claim holiday pay for, and if ultimately they can, how far back this could be backdated. It is a possibility that it could go back to 1998 when the Working Time Regulations were implemented, or it could be limited to six years under the Limitation Act 1980.
"Secondly, which employees will be able to able to bring a claim? If they are required to bring a dispute before tribunal, this would limit the risk to employers as the rule is that claims must be brought within three months of the last underpayment, so it will be difficult for employees who have left employers some time ago to bring claims?
"There is also a worst case scenario which is that the rulings stand the Government changes UK law to make it a requirement of employers to include regular overtime in holiday pay calculations, which is backdated, and also sets up some form of alternative resolution procedure that requires employers to pay."
(IT/CD)
The Employment Appeals Tribunal in the UK has ruled today that this also includes overtime payments.
NIIRTA Chief Executive Glyn Roberts said: "It is not clear if and how employees could claim holiday pay for, and if ultimately they can, how far back this could be backdated. It is a possibility that it could go back to 1998 when the Working Time Regulations were implemented, or it could be limited to six years under the Limitation Act 1980.
"Secondly, which employees will be able to able to bring a claim? If they are required to bring a dispute before tribunal, this would limit the risk to employers as the rule is that claims must be brought within three months of the last underpayment, so it will be difficult for employees who have left employers some time ago to bring claims?
"There is also a worst case scenario which is that the rulings stand the Government changes UK law to make it a requirement of employers to include regular overtime in holiday pay calculations, which is backdated, and also sets up some form of alternative resolution procedure that requires employers to pay."
(IT/CD)
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Northern Ireland WeatherToday:A sunny but frosty start for many. However cloud increases by midday with a few showers reaching the north coast, these mostly light but spreading inland this afternoon. Chilly. Maximum temperature 8 °C.Tonight:A rather cloudy evening with scattered showers. Becoming drier through the night with some good clear spells developing and a patchy frost away from coasts. Minimum temperature 0 °C.