Holiday Pay

All workers are entitled to be paid holiday pay, even casual or temporary workers. Currently the statutory minimum is 28 days per year (which includes 8 bank holidays).

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”: (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 is unlikely to have redress against the employer. The process of rolling up holiday pay is frowned upon by 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 had been a contentious point, however the House of Lords ruled in 2009 that employees can accumulate holiday pay while on sick leave.

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