Holiday Pay and Annual Leave

Are you up to speed on the rules?

impact of annual leave and holiday pay rules on your payrollThis is an area that has caused concerns for many employers and is something that is constantly changing as tribunal rulings and new legislation are updated.

Currently the statutory holiday leave for a full-time employee is 28 days, while part-time employees’ entitlement is adjusted pro-rata.

By law employers cannot pay for untaken holiday, it is at the employers discretion if any untaken holiday can be carried forward.  Additional care required when considering holiday pay for staff members working overtime and commission, and where there are accrued entitlements from maternity, paternity, adoption and sick leave.

Further guidance on holiday entitlements can be found on both the government website ( and the ACAS website (

If you want to discuss the issues of holiday pay and annual leave on your business please call 01384 235549 or email today.


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