What You Need to Know About Holiday Pay and Your Rights as an Employee

Holiday pay is a common benefit that many employers offer to their employees, especially during the festive season. However, not all employees are entitled to holiday pay, and not all employers are required to pay extra for working on a holiday. In this article, we will explain the basics of holiday pay laws and your rights as an employee.

What is holiday pay?

Holiday pay is the compensation that an employer pays to an employee for working on a holiday, or for taking a holiday as part of their annual leave. Holiday pay can be either:

• Statutory holiday pay: This is the minimum amount of holiday pay that an employer must provide to an employee by law. In the UK, for example, most workers are entitled to 5.6 weeks of paid holiday per year, which includes bank holidays1. In the US, however, there is no federal law that requires employers to pay for holidays, unless the employee is covered by a contract or a collective bargaining agreement2.
• Contractual holiday pay: This is the additional amount of holiday pay that an employer may choose to offer to an employee as part of their contract or policy. For example, some employers may pay double or triple the normal rate for working on a holiday, or give extra days of paid holiday as a bonus or incentive.

What are your rights as an employee?

As an employee, you have certain rights and obligations regarding holiday pay, depending on your contract and the laws of your country. Here are some common scenarios and how they affect your holiday pay:

• If you work on a holiday: You may or may not receive extra pay for working on a holiday, depending on your employer’s policy and the laws of your country. For example, in the US, federal law does not require employers to pay extra for working on a holiday, unless it is specified in your contract or a collective bargaining agreement. However, some states or localities may have their own laws that mandate holiday pay. In the UK, on the other hand, employers can choose to include bank holidays as part of your statutory holiday entitlement, or pay you extra for working on them.
• If you take a holiday: You are entitled to receive your normal pay for taking a holiday, as long as you have accrued enough holiday entitlement and you have given proper notice to your employer. You can use the holiday calculator to work out how much leave you should get. If you have not accrued enough holiday entitlement, you can ask your employer for unpaid leave, but they do not have to agree.
• If you leave your job: You are entitled to receive pay in lieu for any untaken statutory holiday entitlement that you have accrued when you leave your job. This means that your employer must pay you for the holidays that you have not taken, instead of letting you take them. However, if you have taken more holiday than you have accrued, your employer can deduct money from your final pay, if it is agreed in your contract or in writing beforehand.

What can you do if your holiday pay is taken away?

If you think that your employer has taken away your holiday pay unfairly or illegally, you have several options to resolve the issue. You can:

• Talk to your employer: The first step is to try to sort out the problem with your employer directly. You can explain why you think your holiday pay is wrong, and ask them to correct it. You can also check your contract, your payslips, and your employer’s holiday policy to see what you are entitled to.
• Contact Acas: If you cannot resolve the issue with your employer, you can contact the Advisory, Conciliation and Arbitration Service (Acas) for free and impartial advice. Acas can help you understand your rights, and offer mediation or conciliation services to help you and your employer reach an agreement.
• Make a claim to an employment tribunal: If you still cannot resolve the issue with your employer, and you think that they have breached your contract or the law, you can make a claim to an employment tribunal. This is a court that deals with employment disputes. You will need to follow certain steps and deadlines to make a claim, and you may have to pay a fee. You can also seek legal advice or representation before making a claim.

Conclusion

Holiday pay is a benefit that many employees enjoy, but it is not always guaranteed or straightforward. Depending on your contract and the laws of your country, you may have different rights and obligations regarding holiday pay. If you have any questions or problems about your holiday pay, you should try to resolve them with your employer first, and then seek further help if needed.