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Holiday pay: EAT confirms deductions are broken by gaps of three months or more

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The Employment Appeals Tribunal has again considered whether, in Fulton and another -v- Bear Scotland Ltd (No.2) UKEATS/0010/16, a gap of three months or more between deductions from wages for underpaid holiday pay breaks the chain of deductions.

This had already been considered in the 2014 case and the EAT considered itself bound by its earlier decision. No reason to depart from the earlier decision existed, and there had been a universal rule established that a break in the chain of deductions limited an employee’s ability to claim for underpaid holiday.

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