Regular readers will know we have been following this case with interest.

The House of Lords has today overturned the Court of Appeal and decided in favour of the workers in the long-running Stringer v HMRC case.

The decision means that a claim for (a) unpaid holiday under regulations 13 and 16 of the Working Time Regulations, or (b) a payment on termination under regulation 14 can be brought as an unauthorised deduction claim as well as under the Working Time Regulations.

The important effect is that a worker can benefit from the more generous time limits which apply to unlawful deduction claims. These claims can be brought within three months of the last in a series of deductions. This means that a claim can cover non-payments or underpayments of holiday pay going back more than three months if the underpayments form part of a series of deductions.

It is clear from the ECJ Directive and the House of Lords decision that any company that fails to introduce, implement and address a good absence management process will be exposed to even greater financial costs. If you wish to speak to us about your absence management policy, or if you do not have one in place then please speak to us immediately.