Holiday pay and entitlement: rolled-up pay, irregular hours and the 5.6 weeks
Quick answer: Every UK worker — including most agency workers, zero-hours workers and casual staff — is entitled to a minimum of 5.6 weeks of paid leave a year, capped at 28 days.
Every UK worker — including most agency workers, zero-hours workers and casual staff — is entitled to a minimum of 5.6 weeks of paid leave a year, capped at 28 days. The trickier questions are how that translates into hours and pounds when work is irregular, what counts as 'a week's pay', and when 'rolled-up' holiday pay is allowed. This guide pulls together the current UK rules including the changes that took effect in April 2024.
Last reviewed:
Primary source: https://www.gov.uk/holiday-entitlement-rights
How the 5.6 weeks works
5.6 weeks of paid leave a year is the floor; many contracts give more. For a five-day-a-week worker that's 28 days, including any bank holidays the contract counts.
The 5.6 weeks splits, in law, into 4 weeks under the Working Time Regulations and an additional 1.6 weeks under UK rules. Some technical distinctions (e.g. on carry-over) still apply between the two parts.
Part-time workers get the pro rata equivalent — e.g. someone working 3 days a week is entitled to 16.8 days a year. Workers on irregular hours accrue holiday based on time worked.
What counts as 'a week's pay'
Holiday pay must reflect what you would normally earn. Following Bear Scotland and subsequent cases, this includes regular overtime (whether contractually guaranteed or routinely worked), commission, shift premia and certain allowances — not just basic pay.
For variable-pay workers, employers calculate average weekly pay over the previous 52 weeks worked (excluding weeks of zero pay). This is the statutory 'reference period' introduced in April 2020 for holiday pay (previously 12 weeks).
Underpayment of holiday pay can be reclaimed for up to 2 years back in tribunal claims, provided the claim is brought within 3 months of the most recent underpayment.
Irregular hours, part-year work and rolled-up pay (from April 2024)
From 1 April 2024 a new statutory framework applies to irregular-hours workers and part-year workers (people who work for some weeks but not others, with no work or pay in between). Entitlement accrues at 12.07% of hours worked in each pay period.
Employers can now legally use 'rolled-up' holiday pay for these workers: instead of paying for periods of actual leave, the worker receives an extra 12.07% on top of every pay packet — clearly shown as a separate line on the payslip.
Rolled-up pay is not allowed for regular full- or part-time staff. They must continue to receive paid leave at the point they take it.
Leaving a job
When you leave, you are entitled to pay in lieu of any accrued holiday in the current leave year that you haven't yet taken. The calculation is pro rata to your length of service that leave year.
If you've taken more leave than you've accrued by your leaving date, your employer can deduct the overpayment from your final wages only if there is a clear contractual right to do so — usually in the employment contract or staff handbook.
Sick leave and family leave (maternity, paternity, shared parental, adoption) continue to accrue statutory holiday in the normal way.
Common questions
- Do bank holidays count as part of the 5.6 weeks?
- It depends on the contract. Bank holidays can be counted towards the statutory 5.6 weeks; many employers do so. Others offer 'X days plus bank holidays' which is more generous. Check the wording in your contract.
- Can my employer refuse a holiday request?
- Yes, provided they give the correct notice. The statutory rule is that the employer's notice of refusal must be at least as long as the leave requested — e.g. one week's refusal for a one-week request. Many contracts impose stricter notice rules and 'closed' periods.
- Can I carry holiday into the next year?
- Up to 1.6 weeks (the additional UK portion) can be carried over by agreement. The 4-week portion is generally use-it-or-lose-it unless you were unable to take it due to sickness or family leave, in which case statutory carry-over rules apply.
- Is holiday pay taxed?
- Yes. Holiday pay is paid through PAYE in the normal way — same Income Tax and National Insurance as any other earnings. Rolled-up holiday pay is taxed in the pay period it is paid.