How is my holiday pay calculated?

Normally a week’s holiday is equivalent to a week’s normal pay. However, a Contract of Employment can improve this position. This therefore does not include any overtime or bonuses.

I have recently started employment and wish to take two weeks holiday soon. Can my employer refuse my request?

In the first year of employment an individual only has the right to take holiday once they have accrued it. This does not prevent an individual from seeking the authorisation of their employer to take more leave than they have accrued. The accrual position is provided for in the Working Time Regulations and again the position may be improved by contractual agreement.

In essence an individual will accrue holiday according to their entitlement, and the stage in their holiday year when they wish to take the leave. For example, if someone is entitled to 20 holiday days in a year, and they are six months into their employment, they will have accrued 10 days holiday leave.

I have been dismissed. Can I recover my unused holiday entitlement?

You are entitled to recover your accrued but untaken holiday entitlement, unless you have a written contract which says otherwise. This would need to be raised as a formal grievance. Once this has been done, and 28 days have passed without payment being made, a claim can be made for breach of the Working Time Regulations and unlawful deduction of wages.

Can my employer take money from my wages if I have used more than my holiday entitlement for the year when my employment terminates?

There is no automatic right for an employer to do this. It needs to be an express provision in the Contract of Employment that they reserve this right. This is referred to as a ‘relevant agreement’.

What is rolled up holiday pay?

This is when an employer pays an extra amount to a worker’s normal hourly rate to account for their holiday entitlement. This means that when a worker takes holiday leave they are not paid. This has been held to be incompatible with European law and as such employers should not operate the scheme – it is unlawful. However the Working Time Directive does not prevent an employer from paying sums transparently and comprehensibly as rolled up holiday pay and then setting off these sums against the payment due for specific leave which is actually taken by a worker.