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UK Employment Rights · 2026

UK Holiday Pay Rights

Alex By Alex · 12-year UK recruiter · Updated April 2026

Holiday pay is one of the most-disputed UK employment areas because the calculation rules have changed several times in the last decade. After 12 years across many UK employers, I can tell you the basic rules and where employers typically get it wrong. Most underpayment is procedural rather than deliberate — employers using fixed-base calculations when the law requires averaged calculations.

The statutory floor

5.6 weeks of paid annual leave (28 days for full-time workers, including bank holidays). Pro-rata for part-time workers. Holiday must be taken in the leave year — generally use-it-or-lose-it for the 4 weeks of EU-derived leave, with limited carry-over for the additional 1.6 weeks if the contract permits. Holiday pay calculation: must reflect 'normal pay' including regular overtime, commission, and bonuses for the EU-derived 4 weeks. Recent case law (Harpur Trust v Brazel, 2022) clarified that part-year workers get 5.6 weeks regardless of weeks worked. Carry-over to next leave year is permitted in specific circumstances (e.g., long-term sickness, maternity).

What employers often add

Most professional UK employers offer above the 28-day statutory minimum. Common patterns: 25 days plus bank holidays = 33 total, 28 days plus bank holidays = 36 total, 30+ days plus bank holidays at established corporates and senior roles. Some employers tie holiday allowance to length of service (e.g., +1 day per year up to 30). Buy/sell holiday schemes are common — typically 1 week in either direction. Holiday accrual continues during sickness absence, maternity leave, and notice periods.

What to do if there's a dispute

  1. 1 Read your contract for the specific holiday allowance and rules
  2. 2 Check your last few payslips — holiday pay should equal normal pay including overtime/commission
  3. 3 Calculate any underpayment using the 12-week average reference period (or 52-week if zero-hours)
  4. 4 Raise underpayment formally in writing to HR or payroll
  5. 5 Tribunal claims for unpaid holiday must be brought within 3 months of the last underpayment

Red flags that should worry you

  • !Holiday pay calculated on basic rate only when you regularly earn overtime or commission
  • !Pressure to take holiday during specific periods that suit the employer (some restrictions are permissible; blanket refusals usually aren't)
  • !Employer attempting to count bank holidays as part of statutory minimum without acknowledging them in contract
  • !Holiday refused for 'business reasons' without alternative dates offered

Where to get help

Acas helpline (0300 123 1100)

Free advice on holiday pay calculations and disputes

Citizens Advice

Free advice for individuals

gov.uk/holiday-entitlement-rights

Official UK government guidance

Your HR team

For employer-specific holiday policy and calculations

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