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Employment Law | Holiday Entitlement.

Holiday Entitlement and Holiday Pay

Most workers in the UK are entitled to paid annual leave. The minimum statutory holiday entitlement is 5.6 weeks each year. For someone who works 5 days a week, this is 28 days' paid holiday per year.


Bank holidays can be included in the statutory holiday entitlement. This means an employer does not usually have to give bank holidays as extra paid leave unless the employment contract says so.


Holiday Entitlement for Full Time Workers


A full-time worker who works 5 days a week is usually entitled to at least 28 days' paid annual leave each year. Some employers provide more than the legal minimum, depending on the employment contract, staff handbook, length of service or workplace policy.


The right applies to workers as well as employees. Employment status can affect workplace rights, so anyone unsure whether they are classed as an employee, worker or self-employed contractor should take advice.


Part Time Workers


Part-time workers are entitled to the same minimum holiday entitlement on a pro rata basis. For example, someone working 2 days a week would usually be entitled to 11.2 days' paid holiday each year, because this is 5.6 weeks of their working pattern.


Holiday entitlement can also be calculated in hours where working patterns vary. The Government provides a holiday entitlement calculator, and employers should explain how holiday is calculated in the written particulars or contract documents.


New Employees and Holiday Accrual


New employees and workers may build up holiday entitlement during their first year of work. The amount of leave available may depend on when they start, how much of the leave year remains and what the contract says.


Employers must provide the main written statement of employment particulars on or before the first day of work. This should include key details about holiday entitlement, holiday pay and whether bank holidays are included.


Requesting Holiday


Workers should follow the employer's holiday request procedure. Employers can refuse a holiday request for genuine business reasons, for example, where too many people are already away at the same time. Still, they must act lawfully and should apply their rules fairly.


Employers can also require workers to take holiday at certain times, or prevent holiday from being taken at certain times, provided they give the correct notice and comply with the contract and working time rules.


Holiday Pay


Workers are entitled to a week's pay for each week of statutory leave they take. Holiday pay should reflect normal pay, which can include regular overtime, commission or other regular payments where these form part of normal earnings.


The rules on holiday pay can be more complex for workers with variable pay, irregular hours, part-year work, commission, overtime or shift premiums. Employers should not simply pay basic pay where the law requires normal pay to be reflected.


Irregular Hours and Part Year Workers


Special rules apply to irregular-hours and part-year workers. For leave years starting on or after 1 April 2024, holiday entitlement for these workers is generally calculated using an accrual method based on hours worked, and rolled up holiday pay is permitted in certain circumstances.


Because the rules are detailed, workers and employers should check the current guidance or seek advice where working patterns are irregular, seasonal, or change from week to week.


Carrying Holiday Forward


If holiday is not used during the holiday year, it may be lost unless the contract allows carryover or a legal exception applies. Exceptions can include sickness absence, maternity leave, family leave or cases where the employer has not given the worker a reasonable opportunity to take holiday.


Where a worker is on long-term sick leave, they can usually carry over up to 4 weeks of statutory holiday and must use it within 18 months of the end of the holiday year in which it accrued.


Holiday When Employment Ends


When employment ends, the worker should be paid for any accrued but unused holidays. If they have taken more holiday than they have accrued, the employer may only make a deduction if the contract allows it or there is another lawful basis for doing so.


Final holiday pay should be calculated carefully, particularly where pay varies, or the worker has overtime, commission or irregular hours.


Getting Advice


If you believe your employer has unlawfully refused holiday, miscalculated holiday entitlement, underpaid holiday pay, or failed to pay accrued holiday when your employment ended, you should seek advice quickly. Time limits can apply to employment tribunal claims.


You may be able to get guidance from Acas, your trade union, Citizens Advice or an employment solicitor.


Find an Employment Solicitor


To find a solicitor who may be able to help with holiday entitlement, holiday pay or employment rights, use the search facility, select Employment Law and enter your location.


Employment Law | Holiday Entitlement.
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