Chief Constable George Hamilton had appealed an industrial tribunal decision that holiday payments to more than 3,700 PSNI officers and support staff had been wrongly calculated over a 20-year period.
Lawyers for the Chief Constable argued that claims should be confined to a three-month period from the date they were lodged.They said the officers and civilian staff are entitled to pursue claims for shortfalls in holiday pay dating back to the commencement of Working Time Regulations in November 1998.
Lawyers for the claimants had argued that the Chief Constable would be "unjustly enriched" by the denial of holiday pay to his staff.