Holiday Entitlement and Pay

The Working Time Regulations 1998 provide workers with a statutory minimum right to annual paid leave. This is a minimum framework and employers may offer more generous contractual terms to their employees. You should check your contract of employment, written statement of particulars or company handbook for any contractual entitlements.

Who is entitled to paid holidays?

The regulations give workers the right to paid holidays. This includes full-time and part-time employees, most agency and free-lance workers but excludes people who are in business on their own account and whose “employer” is in reality their customer or client.

From the 1^st August 03, the regulations on holiday entitlement and pay will now apply to workers in the air, rail, road, sea, inland waterway and lake transport, sea fishing, or other work at sea industries.

What is a workers entitlement to paid holidays?

A worker is entitled to four weeks annual paid leave. Part-time workers are entitled to the same holidays as their full-time colleagues, calculated on a pro-rata basis. Employers may offer better contractual provisions; check your contract, statement of particulars or company handbook for details

Example:

A full-time person working 5 days a week is entitled to 5 days x 4 = 20 days.

A part-timer working two days a week is entitled to 2 days x 4 = 8 days.

A person working 15 hours a week is entitled to 15 hours x 4 = 60 hours per leave year.

There is no statutory entitlement to paid public holidays so an employer may include the public holidays in your four-week entitlement. Where a worker joins during the leave year they will be entitled a proportionate amount of annual paid leave. For example, a worker joining six months during the year will be entitled to two weeks annual paid leave.

Are public holidays counted towards the entitlement?

There is no statutory right to paid public holidays, so employers may include these holidays in the four weeks annual paid leave.

How much holiday pay will I receive?

A worker is entitled to receive a normal weeks pay for each week of annual leave. This will include contractual entitlements such as night shift payments. Overtime will not be included unless these hours are fixed in the workers contract. Where workers do not work regular hours from week to week. Then holiday pay should be calculated by taking the average of the previous 12 weeks work and multiplying these hours by the workers hourly rate.

When does the leave year commence?

Workers start to accrue holidays from their first day of employment. The start of the leave year will be either

• Set out in your contract of employment
• Will be from the date you commenced work
• 1^st October (when the regulations came into force)

How much notice must I give my employer?

The worker must give notice of the dates that he/she intends to take the leave. The notice must be a least double the length of leave the worker intends to take ie one weeks leave equals two weeks notice. The employer may refuse particular dates by giving notice to the employee. Employers can stipulate that workers take annual paid leave at particular times of the year ie company shutdowns, and Christmas periods.

What happens if I’m absent from work?

As long as the contract exists you will be continue to accrue holidays, (for example sickness and ordinary maternity leave). Where holidays are not taken during the leave year, holiday entitlement will be lost, unless agreement is reached with the employer to carry the holidays forward.

What happens when I leave?

When a worker leaves, voluntarily or through dismissal he/she is entitled to receive payment for any untaken holidays accrued during the leave year.

Example: A worker leaves 6 months into the leave year, having taken 3 days holiday. Her entitlement was 20 days a year. 6 months accrual = 10 days holiday – 3 days taken = 7 days to be paid on leaving.

If a worker has taken more holidays than they have accrued during the leave year, the employer may deduct the overpayment only if there is an express clause in the workers contract allowing for the employer to make the deduction.

How do you enforce your rights?

If you feel that you are not receiving the correct entitlement to paid holidays under the Working Time Regulations or your contract of employment then you can enforce your rights in an employment tribunal. You must bring a claim to the tribunal within three months from the date your request for holidays was first refused. Prior to bringing a claim we strongly advise that you seek independent legal advice and assistance from your trade union, a local law centre, citizen’s advice bureau, advice centre or solicitor.

For further information about Holiday entitlement and pay, see www.dti.gov.uk, www.acas.gov.uk, www.employmenttribunals.gov.uk and for details of your local advice agencies and trade unions contact www.lawcentres.org.uk, www.citizensadvice.org.uk, www.tuc.org.uk