Deduction from wages claims must be made to a Tribunal within 3 months of the last deduction being made. The EAT held in 2015 that a series of deductions would be broken where a period of 3 or more months passed between deductions. That potentially significantly limited the value of retrospective holiday pay claims as unless workers were taking part of their 20 day Working Time Directive holiday entitlement at least every 3 months then the chain of deductions would be repeatedly broken.
The case returned to the EAT in 2016 with arguments relating to whether the decision on deductions was part of the Judgement and binding, or whether they were "obiter" comments which do not form part of the formal judgement) and therefore not binding.
The EAT affirmed the earlier judgement that the series of deductions would be broken by a 3 month gap in payments. Since 2015 when the case first came before the EAT legislation has been enacted limiting claims to 2 years. However, confirmation of this further limitation on claims will be welcomed by employers. It remains to be seen how many of the many thousands of claims presently in the Employment Tribunal system will be affected by this Judgement.