When is a series of payments broken-holiday pay?

The case of Agnew v Chief Constable of Northern Ireland has been ongoing since 2018. It is one of many cases about holiday pay.

Agnew concerns a significant number of claims by police and civilian staff for the payment of holiday pay correctly calculated to include overtime. In some cases, the correction goes back to 1998, when a right to paid holiday was first introduced.

Holiday pay can be claimed, provided the claim is brought (broadly) within 3 months of when the payment should have been made. A claim can also be made for a series of incorrect payments, provided the claim is brought (broadly) within 3 months of one payment in the series or the last payment in the series.

The employment tribunal in Agnew decided that the claim could not go beyond this if there was a gap of more than 3 months in a series. The Court of Appeal disagreed, and the Supreme Court, the highest court, agreed with the Court of Appeal.

What does this mean?

In short, so long as a claim for the holiday is brought within three months of the final payment, the claim can cover earlier incorrect payments even if there is a gap of more than three months and even if, within the series, a payment was correctly calculated. Within England, Wales, and Scotland, claims for holiday pay cannot, however, go back more than 2 years from the date of the claim.

In practice

This decision is not a surprise. It does, however, bring about some certainty for historic liability for holiday pay claims.

If you are an employee, it is good news. If you have been paid incorrect amounts for holiday pay, your claim can cover up to two years (or longer, depending on where you are). If you are an employer, this means you have exposure to longer periods of back pay claims.

Whether you are an employee or an employer, our specialist team of solicitors can support and advise you on the implications of this case for you in terms of claims for incorrectly calculated holiday pay. We can also help you calculate holiday pay entitlements for the future. Get in touch, and we’d be delighted to speak with you on a no-obligation basis for up to 15 minutes.