According to unions, a recent supreme court decision could mean that many UK workers have been unfairly deducted thousands of pounds from their pay.
The judgment pertains to a longstanding dispute concerning holiday pay, but Unison, a participating union, claims that the ruling also affects other forms of payment to employees, dubbing it a “victory for underpaid workers.”
In 2018, an employment tribunal ruled that more than 3,700 Police Service of Northern Ireland (PSNI) officers and civilian staff had their holiday pay illegally reduced over a two-decade period. Since then, the case has been progressing through the legal system.
While the PSNI conceded that the claimants were underpaid, they disputed the length of time for which the claimants were entitled to back payments. The supreme court unanimously dismissed the PSNI’s appeal, meaning they could be forced to pay around £40 million in holiday pay to their staff.
Unison argues that the previous interpretation of the law resulted in workers being deprived of money they were owed. Previously, workers who consistently received incorrect pay could only make a claim for the most recent underpayment at an employment tribunal. They could include similar underpayments from previous instances, but not if there was a gap of three months or longer between them.
The new judgment means that many workers will now be able to challenge underpayments in their wages, even if a significant amount of time has passed since the last incident, according to the union.
Furthermore, Unison emphasizes that while the case focused on holiday pay, this issue impacts all employees and applies to claims about all types of wages.
Legislation in Great Britain (excluding Northern Ireland) allows individuals to make claims for unlawful wage deductions related to holiday pay, commission, and bonuses dating back only two years. However, for other payments such as statutory sick pay, statutory maternity, paternity, and adoption pay, as well as time off for union duties, the claim can extend to the initial occurrence of underpayment, Unison clarifies.
Shantha David, Unison’s head of legal, stated that for years, many workers had been treated unfairly, but “this judgment ensures they will receive all the wages they are rightfully owed.”
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