An appeal by the Police Service of Northern Ireland (PSNI) against a ruling over the backdating of revised holiday pay rates for police staff has been dismissed by the Supreme Court.
Rule changes introduced a number of years ago mean that regular overtime worked by civil servants, and other additional payments accrued on top of their basic salary, should be factored in when setting their holiday pay rate.
A cap limiting the retrospective claim-back period in the rest of the UK was not replicated by previous Stormont administrations.
An original industrial tribunal ruled in 2018 in favour of a group representing more than 3,700 PSNI officers and civilian staff that they were owed money for a shortfall in holiday pay dating back 20 years.
The Court of Appeal in Northern Ireland upheld that ruling in 2019.
Lawyers have previously estimated the judgment could cost the police £40 million, and potentially pave the way for similar back payment claims worth hundreds of millions of pounds across the public and private sector in Northern Ireland.
Trade union Unison said the judgment could affect workers across the UK.
Head of legal at the union Shantha David said: "The previous interpretation meant workers couldn't get compensation where a series of similar underpayments had happened three or more months apart.
"The Supreme Court understood here that this could allow some employers to game the system by spacing out holiday payments over more than three months.
"For years, many workers have been denied unfairly the chance to have their legitimate claims heard.
"This judgment ensures they'll get all the wages they're rightfully owed."
The PSNI said it would study the Supreme Court judgment over holiday pay and consider how the costs would be met.
Assistant chief officer for Corporate Services, Mark McNaughten said: "The Police Service of Northern Ireland acknowledges today's important judgment of the UK Supreme Court and welcomes the clarity it brings to some complex legal issues.
"This appeal was progressed in order to seek a definitive ruling from the Supreme Court on difficult points of law and to help ensure that our officers and staff are fairly remunerated in line with our legal obligations.
"We will now take time to study today's judgment in detail, consider the implications and how the costs will be met."
