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"Wages" in this context includes "any fee, bonus, commission, holiday pay or other emolument referable to [a worker's] employment whether payable under his contract or otherwise".However some payments are not limited, such as Statutory Sick Pay, guarantee payments, protective awards and Statutory Maternity, Adoption, Paternity and Shared Parental Pay.A claim for pay in respect of untaken holiday (as opposed to holiday which has been taken but was underpaid) can only be paid when employment ends.The "deduction" is therefore likely to be at the end of employment, rather than a series of deductions stretching back.One interesting question is whether the limit could have any effect on backdated holiday pay claims where the worker has been on long term sickness absence.However, the Regulations are unlikely to apply in that scenario, because according to case law, untaken holiday will be carried over to the next holiday year.No changes to Good cause The good cause provisions have not changed.Working age claimants will still need to demonstrate good cause throughout the period for which they are requesting backdating.
This applies to all backdating requests made on or after 1 April 2016.
As part of the discussions, the Government looked at various options including limiting claims to a six-year backstop (similar to breach of contract claims) but introducing the change immediately.
It was felt that this did not bring a significant reduction for businesses facing large claims.
(NB: A recent case has suggested that holiday may also be carried forward if a worker is unable or unwilling to take it for reasons beyond his control, not only as a result of sickness absence.
In theory, if the worker was working and being paid, there should be no claim for additional holiday pay.
Council Tax Support cannot be backdated for more than one month if the claimant makes their request on or after 1 April 2017 even if this is a belated request linked to a current claim.