Ensuring you have the full holiday allowance and pay that you are entitled to

  • Calculating your full entitlement to holiday allowance and pay can be complicated. It is therefore important to ensure that you are, and have been, receiving your full allowance.
  • If you don’t take your full holiday allowance within the relevant holiday year it can be lost.
  • If you think you may not be receiving the correct holiday entitlement or holiday pay, we can advise how best to resolve this situation and, if necessary, negotiate with your employer on your behalf.

Does your employer allow you to take the statutory minimum amount of holiday each year and when you take holiday are you being paid correctly?

Holiday allowance

Full time employees and workers are entitled to a minimum amount of paid holiday a year. Part time employees and workers are entitled to a pro rata amount of holiday based on the number of hours they work.

Employees and workers who work irregular hours (for example because they work shifts) have a slightly more complex formula to use when calculating their holiday entitlement. For example, shift workers may have holiday allowance calculated using an average of the hours worked over a certain period.

Employers are able to increase an employee’s or worker’s holiday entitlement by setting out a higher allowance within the employment contract. However, they are unable to decrease the holiday entitlement below the statutory minimum.

The law states that you must take a certain amount of holiday per year otherwise it will be lost, unless you were unable to take your holiday because you are sick, injured, pregnant or on maternity leave. In these circumstances, you can carry forward your holiday into the next holiday year. However, your employment contract or staff handbook may set out additional rules relating to carry over of holiday for example limiting the amount of days you can carry over (unless an exception applies) and confirming when you must take that leave by.

If you are concerned that you are not being allowed to take the minimum amount of time off as holiday, please get in touch and we can assist you liaising with your employer to rectify the situation.

Holiday pay

Holiday pay should be paid for the time when annual leave is taken. Employers cannot include an amount for holiday pay in the hourly rate (‘rolled-up holiday pay’). If your current contract still includes rolled-up pay you should contact us so we can advise you on liaising with your employer to re-negotiate your terms of employment.

Employees and workers are entitled to a week’s pay for each week of leave they take. A week’s pay is worked out according to the kind of hours you work and how you are paid for the hours. Although this may sound straight forward, employees should be entitled to receive their “normal remuneration” during at least 4 weeks (20 days) of their annual leave. If as an employee or worker you receive bonus payments, commission payments, work overtime or receive any other type of payments which are intrinsically linked to the performance of your duties, these should be considered when calculating your holiday pay.

If you are concerned that you are not being paid correctly, for example that you lose out on pay when you take holiday, please contact one of our team who can assess your pay and holiday pay and advise your rights and on the next steps you should take.

We have offices in London, Richmond, Southampton, Guildford, Woking and Lymington and offer specialist employment law advice and support to clients nationwide.

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