You must be paid the same amount when you’re on holiday (annual leave) as you’re paid when you’re at work – whatever your working pattern.
Holiday pay must include overtime, bonus or commission if these usually make up part of your weekly pay.
How much pay you get is calculated using the hours you work and how you’re paid for them.
Fixed working hours
If your working hours do not vary (part time or full time) your pay will be calculated using your usual pay rate.
Shift or rota work
If you work shifts (part time or full time) your holiday pay should be the same as the average number of hours you worked at your average hourly rate in the previous 12 weeks. This should not include any sick periods.
No fixed hours
If you do casual work with no normal hours, for example on a ‘zero-hours’ contract, your holiday pay will be the average pay you got over the previous 12 weeks.
These should be weeks in which you were paid. If you were not paid in one of those 12 weeks (because you did not work), the last paid week before that should be used to calculate your holiday pay.
Holiday pay must include what you would normally get in commission if you were working.
All types of overtime you usually work (including voluntary) must be included when calculating holiday pay. If you only work overtime occasionally it does not need to be included.
Rolled-up holiday pay
You must get holiday pay when you take your annual leave.
If your employer spreads your holiday pay over the year by adding an amount on top of your hourly rate, it’s known as ‘rolled-up’ holiday pay.
Your employer should not use rolled-up holiday pay.
Getting paid for untaken holiday
You can only get paid for holiday you have not taken if you’re leaving a job (known as ‘payment in lieu’).
Your employer must pay you for any outstanding statutory holiday when you leave.
Problems with holiday pay
If you think you're not getting as much holiday pay as you’re entitled to you can raise the issue with your employer.