Q&As

Where an employee is employed on two or more successive fixed-term contracts of employment, can payment in lieu of accrued holiday be made at the end of one fixed-term contract, or must it be carried forward to the next fixed-term contract?

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Published on LexisPSL on 28/10/2020

The following Employment Q&A provides comprehensive and up to date legal information covering:

  • Where an employee is employed on two or more successive fixed-term contracts of employment, can payment in lieu of accrued holiday be made at the end of one fixed-term contract, or must it be carried forward to the next fixed-term contract?

Under the Working Time Regulations 1998 (WTR 1998), SI 1998/1833, a worker is entitled:

  1. to 5.6 weeks’ annual leave or holiday, and

  2. to be paid for that holiday

For further information:

  1. on the right to holiday, see Practice Note: Holiday, and

  2. on the right to holiday pay, see Practice Note: Holiday pay

The right to annual leave may not be replaced by a payment in lieu ‘except where the worker’s employment is terminated’.

‘Employment’ for these purposes means employment under the worker’s contract.

WTR 1998, SI 1998/1833 does not specifically state which provisions should be used to determine when a worker’s employme

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