The Deduction from Wages (Limitation) Regulations 2014 impose a 2-year limitation period on compensation for claims of unauthorised deduction from wages presented on or after 1 July 2015. In Coletta v Bath Hill Court (Bournemouth) Property Management Ltd, an ET upheld Coletta’s (C) 2014 claim that his employer had failed to pay him at the correct national minimum wage rates, but rejected his argument that he should be compensated for the 15 years of underpayment as the Limitation Act 1980 meant C could only recover sums going back six years. The EAT upheld C’s appeal. The ET had erred in its interpretation of the Limitation Act. C had brought his claim within 3 months of the last of the deductions and so was entitled to recover the amounts that he should have been paid, without the imposition of a back stop of six years. Note that the 2014 Regulations could be challenged as the ECJ’s ruling in the King v Sash Windows case allows for recovery of 13 years’ unpaid holiday pay.

This update provides summary information and comment on the subject areas covered. Where employment tribunal and appellate court cases are reported, the information does not set out all of the facts, the legal arguments presented and the judgments made in every aspect of the case. Click on the links to access full details. If no link is provided, contact us for more information.  Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, SM&B cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.