A long-running legal case concerning the calculation of holiday pay for more than 3,700 Police Service of Northern Ireland (PSNI) police officers and civilian support staff has moved to the next stage following the latest judgment, which provides greater clarity on how the claims are to be calculated.
The case, which dates back to 2015 and concerns holiday pay claims dating back to 1996, centres on whether overtime and other regular payments should have been included when calculating the holiday pay entitlement of PSNI employees.
McCartan Turkington Breen (MTB) represents approximately 1,800 claimants in total – around 900 serving and retired police officers and 900 PSNI civilian staff – with the wider proceedings involving more than 3,700 police officers and civilian support staff.
The claim was brought by a group of lead claimants representing police officers and civilian staff, with the civilian staff supported by their trade union, the Northern Ireland Public Service Alliance (NIPSA).
Importantly, the latest judgment does not determine the final sum payable to claimants. Instead, it provides clarity as to the methodology to be applied in determining the eventual value of the claims.
The judgement confirms that claimants with the relevant service are entitled to pursue claims for underpayment of annual leave from 23 November 1996, the date by which EU Member States were required to transpose the original Working Time Directive.
It also confirms that there is no single divisor that can be applied retrospectively to all claims, with the appropriate divisor to be determined as a question of fact in individual cases.
Where historic payroll records are unavailable, the tribunal has determined that it is not appropriate to apply a broad-brush approach to quantify loss. However, claimants are not prevented from relying on extrapolated data or sampling to establish the amount of loss, with this to be considered on the evidence in individual cases.
The judgment also determines that the relevant provisions do not confer a power on the tribunal to award interest or ‘interest-like compensation’ as a percentage uplift in claims for underpayment of annual leave.
The latest development follows a series of legal proceedings which have taken the case through the Industrial Tribunal, the Court of Appeal and the Supreme Court.
In 2018, an Industrial Tribunal found that unlawful deductions had been made from the holiday pay entitlements of PSNI staff. The Chief Constable appealed the decision to the Court of Appeal, which upheld the original finding in 2019.
In 2023, the Supreme Court reached the same conclusion, confirming that the failure to include overtime in holiday pay calculations amounted to an unlawful deduction from wages and that the claims could extend back through a series of linked unlawful deductions.
John McShane, Partner Solicitor at McCartan Turkington Breen, who represents approximately 1,800 claimants, said: “This is a hugely significant development in what has been an exceptionally long-running and complex piece of litigation. We represent around 1,800 serving and retired police officers and civilian members of PSNI staff, while the wider case affects more than 3,700 people.
“This judgement provides important clarity on how to the loss is to be calculated for the clients I represent. It confirms the period from which claims can be pursued, provides guidance on how loss should be established where historic records are unavailable and confirms that there is no single divisor that can be applied across all claims.
“We will take now take the time required to consider this judgement and obtain our clients instructions on any appeal to the Court of Appeal
Brian Reid, a retired PSNI officer and claimant in the case, said: “This has been a denial of justice for thousands of PSNI officers and civilian staff who have been systematically underpaid the holiday pay they were entitled to. This is money that is owed to people who have waited an extraordinarily long time to receive it.
“The case has been challenged at every opportunity and, over the years, the position of the claimants has been repeatedly upheld. The evidence and the legal arguments have been overwhelming, yet many people have still been left waiting.
“Sadly, some of those who were part of this case have died without seeing the money they were owed. That is the human cost of a process that has gone on since 2015.
“We welcome the progress made by today’s judgment, but this is not the end of the road. The claimants want to see the outstanding issues resolved, the money they are owed properly calculated and paid, and this long-running denial of justice finally brought to an end.”
Antoinette McMillen, Deputy General Secretary of the Northern Ireland Public Service Alliance (NIPSA) commented: “NIPSA has supported our members throughout this long-running case because they should be able to recover holiday pay that was unlawfully withheld from them.
“Today’s judgment is another important step forward in what has been a lengthy process. While there are still issues to be resolved before the final value of the claims can be determined, it provides greater clarity on the basis on which those claims will be calculated.
“For many of our members, pursuing a case of this scale would simply not have been possible without the collective support and resources of their trade union. We will continue to support our members as the remaining issues are worked through and ensure that the holiday pay due to them is properly calculated and recovered.”
John McShane added: “The scale of this litigation is exceptional. This is potentially one of the highest value employment cases ever seen in Northern Ireland and, depending on the eventual calculation, could rank among the largest settlements of its kind in the UK.
“However, it is important to stress that we are not at the point of announcing a final figure. The judgment has moved the process forward by providing clarity on the issues which will determine the value of the claims, but there is still work to be done before that figure can be established.
“For the claimants, this has been an extraordinarily long wait. The underlying claims date back to 1996 and the legal proceedings themselves have been ongoing since 2015. Many of those involved have waited years for the matter to reach this stage, and sadly some of my clients have passed away with monies properly owed to them never having been paid.
“We will continue to work to ensure that the compensation due to them is calculated properly and in accordance with their legal entitlements.”
Carmel Gates, General Secretary of the Northern Ireland Public Service Alliance (NIPSA) commented: “NIPSA is resolute in its commitment to use all possible mechanisms to obtain justice for its members, be that through campaigning, industrial or legal action. We are continuing to support legal cases against other employers for arrears of holiday pay”.
