The Working Time Regulations 1998 (WTR) entitle almost all workers in the UK to a minimum of 5.6 weeks of paid annual leave per year, which equates to 28 days for someone working a standard five-day week. Employers may count bank holidays towards this total; they are not required to grant them as additional days off unless the contract says otherwise. Part-time workers receive a pro-rata entitlement calculated on the basis of the days or hours they work each week.
Following reforms introduced in January 2024 via the Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023, the rolled-up holiday pay model became lawful for irregular-hours and part-year workers. These workers may receive a 12.07% uplift on each payment as an alternative to accruing a separate leave balance, provided the arrangement is clearly set out in the contract. Full-time and regular part-time employees with normal working hours continue to receive their statutory leave through standard accrual.
Holiday pay must reflect normal remuneration, including regular overtime and commission, not just basic pay. This principle stems from a line of case law including Bear Scotland v Fulton and subsequent Employment Tribunal decisions. Workers must take statutory leave within the relevant leave year; carry-over is only permitted in limited circumstances, including where the worker could not take leave due to sickness or family-related statutory leave.