Final salary payment: Deducting overpaid holiday pay

• Author:
• Hegarty & Co

A new and perhaps surprising decision on paid holiday entitlement (previously reported on the Workplacelaw Network, 30 May 2002) has been made by the Employment Appeals Tribunal. It was decided in Hill -v- Howard Chappel that an employer is not entitled to deduct overpaid holiday from an employee's final salary payment in the absence of a 'relevant agreement' under the Working Time Regulations 1998 authorising such a deduction.

On the facts of the case Mrs Hill had taken 15 days' holiday in... (94 more words)

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