Holiday pay
Holiday pay

The following Employment practice note provides comprehensive and up to date legal information covering:

  • Holiday pay
  • Statutory holiday pay: the basic right
  • 'Basic' and 'additional' statutory holiday: different rules apply
  • How European law affects the calculation of statutory holiday pay
  • Calculating statutory holiday pay: general
  • Distinction between 'normal working hours' and 'no normal working hours'
  • Calculating statutory holiday pay: normal working hours
  • Calculating statutory holiday pay: overtime
  • Calculating statutory holiday pay: commission and bonuses
  • Calculating statutory holiday pay: no normal working hours
  • More...

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. At this point in time (referred to in UK law as ‘IP completion day’), key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see Practice Note: Brexit and IP completion day—implications for employment lawyers.

Coronavirus (COVID-19): Issues relating to holiday and holiday pay during the coronavirus (COVID-19) pandemic are considered in Practice Note: Coronavirus (COVID-19)—holiday and holiday pay.
FORTHCOMING CHANGE: In its ‘Good Work Plan’ published in December 2018 the government indicated that it intends to introduce state enforcement of workers’ holiday pay rights. For further information, see our report: 17 December 2018.

The right to be paid for holidays is a statutory entitlement and may also be a contractual entitlement.

The vast majority of this Practice Note concerns the UK statutory entitlement to holiday pay, and how the European law rights that form part of the underpinning for that entitlement affect it in practice. The discussion of issues relating to statutory holiday pay begins immediately below.

Contractual rights to holiday pay are discussed towards the end of this

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