Retroactive benefits cut | LegaMart

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QuestionApr 30, 2021 - 15:34

Retroactive benefits cut

My company just announced that they will no longer award paid time off, effective 15 days before the announcement. I’m concerned that such a change with ex post facto effect might not be legal. Intuitively, it appears that it would be illegal for a company to say they decided to pay only 50% of the promised wages for time already worked. Is it legal for a company to retroactively reduce or eliminate non-wage compensation for time already worked?


May 6, 2021 - 20:17

Employees have the legal right to be paid for statutory holidays not taken on the termination of the employment and you are entitled to challenge your employer's decision at tribunal. The 1998 Regulations (the working time regulations 69) provide that in the absence of a relevant agreement (any legally enforceable agreement), payment for an untaken holiday on termination is calculated on the basis of a statutory formula.


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