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Employment Law: Holiday Pay
If employees are underpaid for their holiday, they can bring an unlawful deduction from wages claim. A claim must be submitted within 3 months of the underpayment, or the last in any series of deductions. In the case of Bear Scotland v Fulton, the Employment Appeal Tribunal said that a break of three months or more between deductions will break the series. This significantly limits how far back employees can go, because holidays will often be three months or more apart.
