Holiday Pay — Your Right to Paid Annual Leave
All workers in the UK have a statutory right to paid annual leave. But holiday pay is one of the most commonly underpaid entitlements — especially for part-time workers, shift workers, and those on irregular hours. This guide explains what you're entitled to, how holiday pay should be calculated, and what to do if you've been underpaid.
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How much annual leave are you entitled to?
The statutory minimum is 5.6 weeks of paid holiday per year. For a full-time worker doing a 5-day week, that's 28 days. For part-time workers, it's proportional to the days or hours worked.
- ✓5.6 weeks = 28 days for a standard 5-day week worker
- ✓Part-time workers get pro-rata entitlement (e.g. 3 days/week = 16.8 days)
- ✓Bank holidays can be included in the 28-day entitlement — check your contract
- ✓Your employer may offer more than the statutory minimum — check your contract
- ✓Agency workers are entitled to the same annual leave as direct employees after 12 weeks
How holiday pay should be calculated
Holiday pay must reflect your normal remuneration — not just basic pay. This was clarified in several important Employment Tribunal and Employment Appeal Tribunal cases.
- ✓Regular overtime (even voluntary) must be included in holiday pay calculations
- ✓Regular commission must be included
- ✓Regular bonuses paid as part of normal remuneration must be included
- ✓Shift allowances and unsocial hours payments should be included
- ✓The calculation is based on your average pay over the previous 52 weeks (or previous weeks worked if under 52 weeks)
Carrying over annual leave
The rules on carrying over unused annual leave changed from 1 January 2024:
- ✓The 4-week EU pot can be carried over if you were unable to take it due to sickness
- ✓The additional 1.6 weeks cannot normally be carried over (unless your contract says otherwise)
- ✓If your employer prevented you from taking leave, or failed to tell you you'd lose it, you may be able to carry it over
- ✓Leave accrued during sickness absence must be allowed to be taken or paid on termination
- ✓Irregular hours and part-year workers can now carry leave over between leave years
Holiday pay when you leave a job
When your employment ends, you're entitled to be paid for any accrued but untaken holiday. This is called payment in lieu of notice (holiday) or a holiday pay element in your final pay.
- ✓Holiday accrues from day one of employment
- ✓On leaving, you're entitled to pay for all accrued but untaken holiday
- ✓Holiday is calculated pro-rata to the point you leave in the holiday year
- ✓Your employer cannot withhold holiday pay as a disciplinary measure
- ✓If you're owed holiday pay on termination and don't receive it, this is an unlawful deduction from wages
If you're not getting your holiday pay entitlement
Get advice about your specific situation
Ash is a free UK guidance assistant. Ask about your rights, get step-by-step guidance, and generate a formal letter if you need one.
Talk to Ash — it's freeNo sign-up · No account · Works for England, Scotland, Wales & Northern Ireland