All workers are entitled to be paid holiday pay, even causal or temporary workers. Currently the statutory minimum is 24 days per year (which includes bank holidays) and will become 28 days on the 1st October 2008.

Essentially, everyone is entitled to be paid holiday pay by their employer unless that person is truly self-employed – irrespective of what the contract between the parties states. So for example, where an employer is employing “casual staff” they are still entitled to holiday pay – even if the contract says that they are not.

An employer cannot “roll up” holiday pay, that is, say that the pay they are paying their worker includes holiday – unless they meet with certain strict “guidelines” – that is: (1) it is clearly set out in the contract that holiday pay is being rolled up and what percentage represents holiday pay, (2) the payslips clearly show how much pay is for holiday pay, and (3) the employer does all that is practicable to ensure the worker takes that time off.

The process of rolling up holiday pay is unlawful; however, if the “guidelines” are strictly followed then the employee has no redress against the employer. The process of rolling up holiday pay is frowned upon at employment tribunals, so if holiday pay is rolled up it can be a treacherous exercise convincing the tribunal you have followed the “guidelines” to the letter.

The question of whether an employee is entitled to be paid holiday pay whilst off on long term sick leave is currently a disputed point. As we speak, an employee is not entitled to holiday pay is such circumstances; although, a case is currently with the European Court of Justice, which is likely to find that an employee is entitled to holiday pay in such circumstances.