Employers conceded liability for holiday pay under the Working Time Regulations at the Employment Tribunal on the basis that the decision of the EAT in List Design Group v Douglas [2002] ICR 636 entitled the employee to 3 years' holiday pay. A few days later, the Court of Appeal in HMRC v Ainsworth & Anor [2005] IRLR 465 held that the approach in List Design was wrong. The effect was to limit to 3 months the period in respect of which unpaid holiday pay could be claimed under the WTR. The Tribunal then agreed that compensation should be reduced accordingly.