How many days of paid holiday am I legally entitled to in the UK?

Under the Working Time Regulations 1998, all workers (including part-time, agency, and zero-hours workers) are entitled to a minimum of 5.6 weeks of paid holiday per year. For a full-time worker working 5 days a week, this is 28 days (including bank holidays). Part-time workers get a pro-rata amount. This entitlement starts from day one of employment and cannot be contracted out of.

How should my holiday pay be calculated?

Holiday pay must reflect your 'normal remuneration'. For workers with regular hours and fixed pay, this is straightforward. But if you regularly work overtime, earn commission, or receive other regular payments, these must be included in your holiday pay calculation. The reference period for calculating average pay is the 52 weeks before the leave, excluding any weeks where no pay was received (up to 104 weeks back).

Can I claim back-pay for holiday pay that was underpaid in previous years?

Yes. If your employer has consistently underpaid your holiday pay, you can bring an Employment Tribunal claim for unlawful deduction from wages. You can claim a series of deductions going back up to 2 years from the date of your claim. If there was a gap of more than 3 months between deductions, the series may be broken. Act quickly — Tribunal time limits are strict.

Am I entitled to be paid for accrued but untaken holiday when I leave a job?

Yes. When your employment ends, your employer must pay you for any statutory holiday you have accrued but not taken in the current leave year. This is called 'pay in lieu of notice' for holiday. If they refuse, this is an unlawful deduction from wages and you can claim through ACAS Early Conciliation and, if needed, the Employment Tribunal.

How to Write a Holiday Pay Dispute Letter in the UK

Every UK worker is legally entitled to 5.6 weeks of paid holiday. If your employer has underpaid, refused to pay, or miscalculated your holiday entitlement, you can claim back up to 2 years of arrears — and a formal letter is where it starts.

What the Law Says

Working Time Regulations 1998, Regulation 13

A worker is entitled to 5.6 weeks' annual leave in each leave year. Leave may be taken in instalments. A worker's entitlement to leave is not capable of being replaced by a payment in lieu, except on termination of employment. Holiday pay must be calculated at the rate of a week's pay as defined by the Employment Rights Act 1996.

The calculation of holiday pay has been significantly expanded by case law:

Bear Scotland v Fulton [2014] — established that regular overtime must be included in holiday pay calculations
Lock v British Gas [2016] — confirmed that regular commission payments must be reflected in holiday pay
Employment Rights Act 1996, Section 13 — prohibits unlawful deductions from wages, which includes underpaid holiday pay
Harpur Trust v Brazel [2022] — Supreme Court ruling confirming that the 52-week averaging method applies to part-year workers

Your right to paid holiday applies from day one of employment. Zero-hours workers, agency workers, and part-time workers all have the same entitlement, calculated on a pro-rata basis.

When You Have a Valid Claim

You have grounds to dispute holiday pay when:

You were paid basic salary only during holiday, but you regularly earn overtime, commission, or other payments that are part of your normal remuneration
Your employer has refused to pay for accrued untaken holiday when your employment ends
You were paid at the wrong rate — for example, minimum wage when your normal hourly rate is higher
You were denied leave entirely — your employer told you to carry over holiday you couldn't take, without paying it out
You are on a zero-hours contract and were told you have no holiday entitlement (this is always wrong — all workers accrue holiday from day one)

How to Calculate What You're Owed

For workers with regular hours, holiday pay is based on the average weekly pay over the 52 weeks before the holiday was taken (ignoring any weeks where no work was done, going back up to 104 weeks). Multiply this by the number of days underpaid or unpaid. For irregular hours workers, the same 52-week averaging rule applies.

What Your Letter Should Include

Holiday Pay Dispute Letter Checklist

Your full name, job title, and employment start date
Date of the letter
A clear description of the underpayment: which periods of leave were affected, and what was paid vs what should have been paid
Your calculation of the amount owed (show your working)
Evidence: payslips showing holiday pay vs normal pay, any overtime/commission records
Reference to the Working Time Regulations 1998, Regulation 13
Reference to relevant case law if overtime or commission is involved (Bear Scotland, Lock v British Gas)
Reference to Employment Rights Act 1996, Section 13 (unlawful deduction from wages)
A deadline for payment (typically 14 days)
Statement that you will pursue via ACAS Early Conciliation and Employment Tribunal if not resolved

Key tip: Send the letter by email with a read receipt so there is a timestamped record. The 3-month Employment Tribunal time limit runs from the last underpayment — not from when you send the letter. If the dispute is unresolved, begin ACAS conciliation before the deadline expires.

Escalation Paths

If your employer disputes your claim or fails to respond, here are your options in order:

Internal Grievance

If your employer does not respond to your letter, follow up by raising a formal grievance under the ACAS Code. This creates a formal record and triggers your employer's obligations to respond within a reasonable time. Keep all written correspondence. A failure by your employer to follow the ACAS Code can increase any Tribunal award by up to 25%.

ACAS Early Conciliation

Before you can make an Employment Tribunal claim, you must contact ACAS and attempt Early Conciliation. This is free and confidential. The conciliation window pauses your Tribunal time limit. Many holiday pay disputes settle at this stage. If conciliation fails, ACAS issues a certificate you need to proceed to Tribunal.

Employment Tribunal Claim

Claims for holiday pay are made as unlawful deduction from wages under the Employment Rights Act 1996. There is no fee to submit a claim. You can claim a series of underpayments going back up to 2 years. The claim must be submitted within 3 months minus 1 day from the last underpayment (extended during ACAS conciliation). You do not need a solicitor for straightforward claims.

HMRC Complaint (National Minimum Wage)

If underpaid holiday pay brings your effective hourly rate below the National Minimum Wage, you can also report your employer to HMRC. HMRC can investigate, issue penalty notices, and name the employer publicly. This is particularly relevant for workers on minimum wage whose holiday pay is systematically underpaid.

Important: Do not resign before resolving a holiday pay dispute unless you intend to claim constructive dismissal. Resigning does not affect your right to claim unpaid holiday, but it may complicate other employment claims. Keep your employment records, payslips, and any communications about leave requests.

Get a free holiday pay dispute letter template straight to your inbox

Not ready to generate your letter now? We'll send you a free template to keep.

✓ On its way. Check your inbox.

Get your holiday pay dispute letter now

Professional letter citing the Working Time Regulations 1998 and relevant case law. Personalised with your dates, amounts, and calculation. Ready to send in minutes.

Generate Your Letter

Just £2.99 — no subscription needed