Holiday Leave and Holiday Pay

Holiday is an important part of working life. It gives you time away from work to rest and take a break.

If you are working, it is useful to understand how much holiday you are entitled to, how to request it and how you should be paid when you take it.

How much holiday do you get?

Most workers are legally entitled to 5.6 weeks of paid holiday each year.

For someone who works 5 days a week, this is usually 28 days of paid holiday.

Part-time workers are also entitled to 5.6 weeks of paid holiday, but the number of days they receive will depend on their normal working pattern.

Your contract may give you more holiday than the legal minimum, so check your employment contract or workplace holiday policy.

When can you take your holiday?

Your employer should have a process for requesting holiday. This could involve an online system, a form or asking your manager.

Check:

  • When the holiday year starts and ends
  • How much notice you need to give
  • Who approves holiday requests
  • Whether there are particular times when holiday cannot normally be taken
  • How bank holidays are dealt with

It is a good idea to request holiday as early as possible, particularly if you want time off during busy periods.

Do not assume that your holiday has been approved until your employer confirms it.

Can your employer refuse a holiday request?

There may be circumstances where your employer cannot approve the dates you have requested.

For example, there may be a particularly busy period or other employees may already have holiday booked.

Your employer should have a process for managing holiday requests. Check your contract or workplace policy if you are unsure about the rules.

Employers also have responsibilities to make sure workers can take the holiday they are entitled to.

What is holiday pay?

Holiday pay is the money you receive while you are taking paid holiday.

The amount you receive depends on your working pattern and the type of pay you normally receive.

If your working hours and pay do not vary, your holiday pay will normally be based on your usual pay rate.

For example: if you normally work the same hours each week and receive £600 a week, you would normally receive £600 for a week’s holiday. 

If your hours or pay vary, different rules can apply. For example, there are specific rules for calculating holiday pay for irregular-hours workers and part-year workers. 

What must be included in holiday pay?

Holiday pay is not always based only on your basic pay.

By law, holiday pay must include certain payments, including:

  • Commission linked to tasks you are required to do as part of your job
  • Payments linked to your professional or personal status, such as payments for length of service, seniority or professional qualifications
  • Relevant overtime payments, if you have regularly received them during the previous year 

These relevant payments must be included in at least 4 weeks of your paid holiday entitlement.

Some employers choose to include these payments in all 5.6 weeks of statutory holiday, but they do not have to. 

You do not need to work out the calculation yourself. If you are unsure how your holiday pay has been calculated, you can ask your employer or HR to explain it.

What if you regularly work overtime?

If you regularly receive overtime payments, relevant overtime payments must be included in your holiday pay where you have regularly received them during the previous year.

For most employees, these payments must be included in at least 4 weeks of paid holiday.

For irregular-hours workers and part-year workers, relevant payments must be included in 5.6 weeks of holiday pay.

An employer can choose to include relevant overtime payments in the calculation for the full 5.6 weeks of holiday for all employees, but they do not have to. 

You do not need to calculate this yourself. If you regularly work overtime and are unsure whether it has been included in your holiday pay, ask your employer or HR to explain how your holiday pay has been calculated.

What if you work irregular hours?

If your working hours change from week to week, your holiday pay may be calculated differently from someone who works the same hours every week.

There are specific rules for irregular-hours workers and part-year workers. Their holiday pay is generally based on their average pay over a 52-week reference period. 

If you are unsure how your holiday entitlement or holiday pay has been calculated, ask your employer to explain it.

What is rolled-up holiday pay?

Most workers should receive their holiday pay when they take their holiday.

There is a specific system called rolled-up holiday pay that employers can use for irregular-hours workers and part-year workers.

Under this system, holiday pay is spread across the year and an additional amount is added to the worker’s pay. 

If you are unsure whether this applies to you, check your payslip or contract and ask your employer.

What happens to holiday you do not take?

You should normally take your holiday during the holiday year in which it is due.

There are some circumstances where holiday can be carried over into the next holiday year. The rules can depend on why the holiday was not taken and the type of holiday involved.

For example, there are specific rules about carrying holiday over in some circumstances involving sickness or statutory leave.

Your employer may also have rules about carrying over additional contractual holiday, so check your contract or workplace policy if you are unsure.

What happens when you leave your job?

When you leave your job, your final pay should normally include payment for holiday you have built up but have not taken.

If you have taken more holiday than you had built up, the position can depend on your contract and the circumstances.

Check your final payslip if you leave your job and ask your employer if you are unsure how your holiday payment has been calculated.

What if you think your holiday pay is wrong?

If you think you have not received the correct holiday pay:

  1. Check your payslip and employment contract.
  2. Ask your employer or HR how your holiday pay was calculated.
  3. Keep records of your holiday requests and payments.
  4. If the problem is not resolved, consider getting advice from Acas.

If an employer does not correct a problem with holiday pay, an employment tribunal claim may be possible in some circumstances. Strict time limits apply. Acas currently states that, in most cases, the time limit is 3 months minus 1 day from the date of the most recent incorrect holiday payment. The rules can vary, so get advice as soon as possible if you think you may need to make a claim. 

Holiday leave for your mental health

Taking time away from work is an important part of looking after your mental health. When you are working regularly, it can be easy to get caught up in deadlines, responsibilities and the routine of getting through each week. You might tell yourself that you will take a break when work becomes quieter or when you feel like you really need it. However, waiting until you are completely exhausted can make it much harder to recover. You do not have to reach burnout before you are allowed to rest. Annual leave gives you protected time away from work to recharge, spend time with people you care about and focus on parts of your life that may get less attention when you are working.

Use your annual leave throughout the year

If your workplace allows it, consider spreading your annual leave across the year rather than using most of it at one time. Having regular breaks can give you something to look forward to and may prevent long periods of working without enough time to recover. You might choose to have one longer holiday as well as using some individual days or shorter periods of leave throughout the year. Taking a day off after a particularly demanding period at work can also give you some breathing space before returning to your usual routine.

There is no single “best” way to use annual leave. Some people benefit from longer periods away from work, while others find that regular shorter breaks work better for them. Think about your own energy levels, workload and commitments when planning your leave. If you notice that you regularly feel exhausted by a particular point in the year, this might be a useful time to plan a break rather than waiting until you are already struggling.

Give yourself time to actually recover

Taking annual leave does not automatically mean that you will feel rested. If you spend your entire break catching up on chores, appointments, studying or other responsibilities, you may return to work without having had much time to recover. Try to leave some space in your plans for doing very little. Resting, having a lie-in, watching something you enjoy, reading, sitting outside or spending a quiet day at home are all valid ways to use your time off.

You also do not need to make your holiday exciting or productive. You might feel pressure to travel somewhere, see lots of people or make the most of every day, particularly when you see other people’s holidays on social media. Remember that your annual leave is about what helps you recharge, not about creating an impressive set of memories or photographs.

Do something different from work

For some people, the most helpful holidays include activities that feel completely different from their working life. If your job involves sitting at a desk all day, you might enjoy getting outdoors or doing something active. If your job involves constant interaction with people, you might need some quieter time. If your work is physically demanding, you might prefer activities that allow your body to rest.

Think about what you feel that you are missing when you are working. You might want more time with friends, more time outdoors, opportunities to be creative, exercise, hobbies, gaming, reading or simply time without responsibilities. You do not have to do everything during one holiday. Even making space for one or two things that matter to you can make your time away from work feel more restorative.

Try to switch off from work

It can be difficult to properly enjoy annual leave if you are still thinking about work. Before you go on holiday, try to finish or hand over anything that genuinely needs attention and make sure you know who will deal with urgent issues while you are away. If you are not expected to work while on leave, consider switching off work notifications and avoiding checking your work emails or messages.

If you find yourself worrying about work while you are off, remind yourself that you are allowed to have time away from your job. Writing down something you need to remember for when you return can sometimes help you put the thought aside rather than repeatedly thinking about it.

When you return, you may also need some time to get back into your routine. If possible, avoid putting too much pressure on yourself to catch up on everything immediately. Prioritise what is important and give yourself time to settle back into work.

Don’t feel guilty for taking time off

Some people feel guilty about using their annual leave, particularly if they know their colleagues are busy or they have a lot of work to do. You might worry that people will think you are lazy, that you should be working harder or that taking time off will leave other people with more work.

Remember that rest is not the opposite of being productive. Taking appropriate breaks can help you maintain your energy and wellbeing over the longer term. You are not doing something wrong by taking the leave you are entitled to. If you regularly feel unable to take annual leave because your workload is too high, this may be something worth discussing with your manager.

Taking time off does not mean that you need to book an expensive holiday or travel somewhere. Financial pressure can sometimes make a holiday more stressful rather than relaxing. A staycation or a few quiet days at home can still provide valuable time away from work. You could explore somewhere nearby, visit family or friends, spend time in nature, work on a hobby or simply enjoy having fewer demands on your time.

Plan your return as well as your time off

It can sometimes help to leave yourself a little time to adjust before returning to work, particularly after a longer holiday. If possible, avoid planning a packed schedule immediately before or after your leave. Give yourself time to unpack, do laundry, get food in, catch up on sleep and return to your normal routine.

When you return to work, try to prioritise rather than attempting to deal with everything at once. If your workload regularly feels unmanageable, consider speaking to your manager about priorities, workload or available support. Taking annual leave can help you recover, but it cannot solve an ongoing situation where you are consistently overworked or unsupported.

Feelings around holiday leave

Regularly feeling exhausted, irritable, overwhelmed, unable to switch off or anxious about work may be signs that you need to pay more attention to your wellbeing. A holiday can provide some temporary relief, but if these feelings continue when you return to work, it may be worth talking to someone about what is happening.

This could be a trusted person, your manager, occupational health, a GP or a mental health professional, depending on what you need. You do not need to wait until things become a crisis before asking for support.

Taking annual leave is not something you should only do when you have “earned” it through working particularly hard. Work is one part of your life, and having time for rest, relationships, interests and yourself is important too. Finding a pattern of work and rest that you can maintain over time can help protect your mental health and make your working life more sustainable.

Before you start a job

It is useful to check:

  • How much paid holiday you receive
  • When the holiday year runs
  • How you request holiday
  • How bank holidays are dealt with
  • Whether the employer offers more than the legal minimum
  • How holiday pay is calculated
  • Whether you regularly receive overtime or other payments that could affect holiday pay

Further information