A Recap Of The Issue
The general principle underpinning holiday pay is that workers should receive the same pay while they are on annual leave as they normally receive while they are at work: there should be no deterrent from taking annual leave because income will fall.
The principle was confirmed in 2014, when the Employment Appeals Tribunal ruled that under the EU Working Time Directive, employers should be taking regular overtime into consideration when calculating pay during holidays.
Following Lloyds Banking Group’s apparent failure to calculate holiday pay in accordance with UK and European law (which means that some staff have been underpaid), Accord and Unite agreed the Bank’s proposal to compensate staff for 12 months missing pay.
However, under the Deduction from Wages (Limitation) Regulations 2014, a claim for deductions from wages for holiday pay can be made for a 2 year period, so many staff covered by Accord and Unite’s agreement will get only half of the money they’re entitled to receive.