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...

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 Practice Note. See: Contractual holiday pay.

For information and guidance on the right to take time off for holidays, as opposed to the right to be paid for such holidays, see Practice Note: Holiday instead.

Statutory holiday pay: the basic right

The Working Time Regulations 1998, SI 1998/1833 (WTR 1998) entitle a worker to be paid:

  1. in respect of any period of statutory holiday

  2. in lieu of any statutory holiday entitlement accrued but unused on termination of their employment

With effect from 26 February 2016, agricultural workers

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