2 year cap on claims for unlawful deductions kicks in on 1st July 2015

You are entitled not to have unauthorised deductions made from your wages, including where there has been a complete non-payment of sums due to you. This protection applies both to employees and to some self-employed workers.

The law has changed recently placing a 2 year cap on all claims for backdated holiday pay that are brought after 1st July 2015 (whether made through the Employment Tribunal or the civil courts).

The change also covers claims for historic deductions from wages (which includes any fee, salary, bonus, commission, holiday pay or other benefit due under your contract or otherwise), where the claim is being made in the employment tribunal. The period that the claim can cover will also be limited to a maximum of 2 years. Any such claim accordingly needs to actually be lodged in the employment tribunal by 30th June 2015.

If this deadline applies to you, and you are considering making a tribunal claim, you will need to ensure that you have received an ACAS Early Conciliation Certificate and that your claim is lodged with an Employment Tribunal on or before 30th June 2015. The ACAS certificate must be obtained before a claim can be lodged.

It must be stressed that you still have a period of 6 years to bring a claim in the civil courts for a breach of contract, but the employment tribunal route (which is cheaper and often speedier) will only be open to claims going back to the 2 year period.

Please contact us urgently if a long term potential claim for unlawful deductions relate to you, and we can protect your position.

Click here for the unlawful deductions from wages page

Click here for the holidays page

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