My employer refuses to pay my holiday entitlement

Quick Answer

You are legally entitled to 5.6 weeks of paid annual leave. Your employer cannot refuse to pay you for holiday. You can bring an Employment Tribunal claim for unlawful deduction from wages within three months of the failure to pay.

The Working Time Regulations 1998 give all workers (not just employees) the right to 5.6 weeks of paid annual leave per year (28 days for a full-time worker, including public holidays). Part-time workers receive a proportionate entitlement. The right applies from the first day of employment.

Holiday pay must be calculated at your "normal" rate of remuneration. For workers with variable pay (commission, overtime, allowances), the rate must reflect average earnings over a reference period. Following the Supreme Court decision in Brazel v Harpur Trust [2022], holiday pay for workers with irregular hours requires careful calculation — it cannot simply be calculated as 12.07% of earnings.

If your employer refuses to pay holiday pay, or pays you less than the correct amount, this constitutes an unlawful deduction from wages under section 13 of the Employment Rights Act 1996. You can bring a claim in the Employment Tribunal within three months minus one day of the date the deduction was made (or the last in a series of deductions). No minimum employment period is required.

You can also raise a formal grievance with your employer in writing setting out your entitlement and the amount unpaid. Keep records of all holiday taken, refused, and paid.

Importantly, you cannot waive your right to annual leave — it is a statutory right. Any contractual term that purports to replace statutory holiday with pay in lieu (except on termination) is void.

Relevant legislation

  • • Working Time Regulations 1998, reg.13
  • • Employment Rights Act 1996, s.13
  • • Brazel v Harpur Trust [2022] UKSC 21

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