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July is the traditional period known as "fence month," the closed season for deer in England.

The end of England's High Court of Justice Trinity Term takes place on 31 July.

To limit employers' financial exposure, particularly at a time where businesses were struggling in a difficult economic climate, the government introduced the Limitation Regulations.

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In particular, the first option considered above will be made much less likely where a business closes on public holidays and workers are given time off on these days.

In these circumstances, the holiday year will be frequently punctuated by holiday days and, therefore, it will be harder to find a sufficient gap where a worker has not taken any holiday at all.

Permission to appeal this issue was granted as the judge referred to it as "arguable as well as of public importance".

Although the AMEC decision is not itself being appealed, it is likely that this issue will be considered in future litigation.

This article considers the potential extent of those historic holiday pay liabilities as well as looking at ways in which those liabilities could possibly be reduced.

The bad news for employers is that historic liabilities could be significant; particularly where a number of workers are affected and/or variable payments make up a large proportion of workers' pay packets.

In particular, as well as departing from previous unlawful deductions case law, it also does not fit comfortably with other similar concepts of a "continuing act" in discrimination law, where the cases have determined that individual acts of discrimination can form a continuing act regardless of whether they occur three months or more apart (Southern Cross Healthcare v Owolabi).

Commentators have therefore suggested that the findings in AMEC on this point were incorrect and were simply driven by public policy to limit the potential liability employers could be facing.

However, at least for the time being, the AMEC decision gives employers two opportunities to try and further limit historic liabilities: How likely is it in practice that there will be a three month gap?

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