Holiday Entitlement and Pay

PAYadvice.UK have a number of articles which cover the lawful application of holiday pay in the United Kingdom. Please note that there can and are differences between Great Britain and Northern Ireland.

This pages brings together articles that have been published to address the responsibilities and duties of employers to pay holiday leave.

Holiday pay changes 2024

The Department for Business and Trade (DBT) announced on Wednesday 8th November a series of series of changes in response to consultations involving holiday entitlements and pay.

Holiday consultation – the response

This announced a change to two aspects:

The ending of the COVID carry forward of holiday entitlement (all to be used by 30th March 2024)
New holiday entitlement and pay rules for Irregular Hours and Part Year workers. And the option for Rolled-up Holiday Pay (RHP). The changes apply to holiday years commencing on or after 1st April 2024.

More detail on the change can be found at:

Rolled Up Holiday Pay choice for Employers

On Monday 1st January 2024 the DBT issued new guidance:

DBT publish new guidance on Simplifying holiday entitlement and holiday pay calculation

New Holiday Pay 12.07% – not as easy as you think!

Holiday Rights

What are employees entitled too and how much should they be paid.

Do you know your holiday pay rights?

Are you receiving the holiday pay you are entitled too?
Some workers are being denied their legal rights to holiday pay!

Holiday Entitlement

All employees and workers were annually entitled to 5.6 paid weeks holiday.

For holiday years commencing on or after 1st April 2024 for irregular hours and part year workers, this changes.

The following relate to holiday entitlement:

Holiday – what is my entitlement?

Holiday accrual, how does it work?

Zero hours and irregular workers entitlements to holiday pay

Supreme Court Holiday Pay ruling – 12.07% is unlawful

Casual workers and holiday accrual

Holiday Pay

Since April 2020, holiday pay for Great Britain is required to be based as a minimum on the 52 paid week average excluding zero pay weeks. Northern Ireland remains as a 12 week paid earnings average.

Holiday Pay changes – April 2020

A common method of using a percentage of 12.07% (46.4/52 weeks) has been ruled as unlawful not meeting the Employment Rights Act stipulated requirements. However, proposed changes for irregular hours and part year workers are being introduced in 2024

Harpur Trust (Appellant) v Brazel (Respondent) [2022]UKSC 21
On appeal from: [2019] EWCA Civ 1402

This changes for irregular hours and part year workers where the holiday year commences on or after 1st April 2024 with the introduction of a 12.07% accrual or the pay,ent of Rolled-up Holiday Pay (RHP) at a rate of 12.07% of total earnings.

Rolled Up Holiday Pay choice for Employers

Bank Holidays

Bank or public holidays do not have to be given as paid leave.

An employer can choose to include bank holidays as part of a worker’s statutory annual leave.

Christmas 2022 – when are the Bank Holidays and what about paying early?

6th May 2023 Bank holiday proclaimed

Employer must keep holiday entitlement and payment records

As part of the Employment Rights Act 2025. changes have been applied to the Working Time Regulations requiring employer to keep holidy pay records for 6 years from 6th April 2026.

Employers required to keep holiday records – PAYadvice.UK

Extra leave (above statutory minimum)

An employer can choose to offer more leave than the legal minimum. They do not have to apply the rules that apply to statutory leave to the extra leave. For example, a worker might need to be employed for a certain amount of time before they become entitled to it.