UK workers could be entitled to THOUSANDS in unfairly deducted wages after a holiday pay ruling. Unison says the decision affects other types of employee payments and is a “victory for underpaid workers” in the UK after a supreme court decision this week.
The long-running row over holiday pay saw employees win out, after a 2018 employment tribunal found in favour of 3,700 Police Service of Northern Ireland (PSNI) officers and civilian staff over a period of 20 years. Since the victory, a fresh case has been making its way through the courts.
Lawyers have previously estimated the judgment could cost the police £40 million, and potentially pave the way for similar back payment claims worth hundreds of millions of pounds across the public and private sector in Northern Ireland.
Former PSNI chief constable Simon Byrne appealed the case to the Supreme Court. The PSNI had accepted the claimants were underpaid and the appeal centred on how far back the claims could reach and the correct method of calculating the underpayments.
But delivering a ruling on Wednesday, Supreme Court judge Lady Rose dismissed the appeal. Head of legal at the union Shantha David said: “The previous interpretation meant workers couldn’t get compensation where a series of similar underpayments had happened three or more months apart. The Supreme Court understood here that this could allow some employers to game the system by spacing out holiday payments over more than three months.
“For years, many workers have been denied unfairly the chance to have their legitimate claims heard. This judgment ensures they’ll get all the wages they’re rightfully owed.” Niall McMullan, head of employment law at legal firm Edwards & Co, said it was a “resounding and emphatic outcome” for his clients.
He said: “The cost to the PSNI will be substantial. Police officers were short-changed when it came to holiday pay and it is now confirmed they are entitled to the same protections and safeguards as other workers.” Mr McMullan said it will now be for the industrial tribunal to decide how much each officer or staff member should receive.
He added: “This judgment by the Supreme Court is now the end of the line. This is a complete vindication and means past under-payments will have to be made good and clients compensated for loss of wages when taking annual leave, but that will be for the industrial tribunal to adjudicate.”
