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Holiday Pay Dispute

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Holiday Pay Dispute

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27 July, 24
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I recently used Lawhive to assist with my British citizenship application, and the experience was fantastic. My lawyer was incredibly helpful and kind throughout the entire process.
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We had a very good experience with…
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About

A Holiday Pay Dispute is a disagreement between an employer and employee over the amount of holiday pay that is due. Solicitors can help resolve these disputes and ensure that employees are paid the correct amount of holiday pay.Next steps

How much does a Holiday Pay Dispute cost?

The cost for a licensed solicitor to help with a Holiday Pay Dispute is dependent on many factors including the complexity and specific requirements of the case. On average it is expected to range from £150-£200 but in some cases it could cost as much as £250.

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Holiday Pay Dispute Solicitors

Imagine planning a well-deserved break only to discover your holiday pay isn't what you expected, or worse, not getting paid at all. Without a doubt, dealing with issues relating to holiday entitlements and pay is frustrating.

And it's not just about the money. If your employer doesn't recognise your entitlement to holiday pay, refuses to calculate it correctly, or ignores your right to take leave altogether it can leave you feeling undervalued, and impact your right to rest and recharge.

If you're facing a holiday dispute with your employer, our network of experienced employment lawyers is on hand to help you understand your rights regarding holiday pay and leave entitlements.

Further, they are skilled negotiators who can engage with your employer to settle issues or, if necessary, provide representation at employment tribunals.

Don't let a holiday pay dispute disrupt your peace of mind or your finances.

Contact us today to schedule a free case evaluation with our Legal Assessment Team.

We'll provide clear, actionable next steps and connect you with an expert employment lawyer to reclaim your rightful holiday pay.

Under the Working Time Regulations 1998, full-time employees are entitled to a minimum of 28 days of paid annual leave per year. This includes bank and public holidays.

Part-time employees are entitled to a pro-rata amount of 28 days, based on the number of hours they work compared to a full-time employee.

For employees with irregular hours or zero-hours contracts, holiday entitlement is usually calculated as a percentage of hours worked, typically equating to 12.07% of hours worked.

That said, some employers offer more than the statutory minimum leave in their employment contracts or company policies. Your specific entitlement should be stated in your employment contract or employee handbook.

How is holiday pay calculated?

Holiday pay should be calculated based on your usual earnings.

So, if you're an employee with regular hours and pay, you should receive your standard weekly pay for each week of holiday taken.

If your pay varies, holiday pay is typically calculated based on your average pay over the previous 52 weeks that you worked.

What should I do if my holiday pay has been underpaid or unpaid?

If your holiday pay has been underpaid or unpaid you should:

  1. Raise the issue informally with your manager, HR department, or payroll department.

  2. If informal discussions don't resolve the issue, submit a formal grievance.

  3. Consult Acas, seek legal advice, or contact your trade union for additional support.

  4. File a claim with the employment tribunal.

Can my employer refuse my request for holiday leave?

Employers can approve or deny holiday leave requests based on business needs and operational requirements.

For example, they may refuse holiday leave requests:

  • During busy periods or peak times;

  • If granting the request would result in inadequate staffing or affect the business's ability to operate effectively;

  • If they receive multiple requests for the same period and approving them all would disrupt business operations;

  • If you do not give enough notice your request does not follow the holiday policy;

  • To maintain minimum staffing levels or continuity of service;

  • If approving the request would breach health and safety regulations or compromise safety.

When refusing holiday leave, however, employers should provide reasonable notice and explanation.

Further, they should make sure that refusals are made fairly and consistently across the workforce, without discrimination.

What is the process for accruing holiday pay during sick leave or maternity leave?

Employees continue to accrue statutory holiday entitlement while on sick leave, regardless of how long their illness lasts.

Similarly, employees on statutory maternity leave continue to accrue statutory and contractual holiday entitlement if they working normally. This is protected under the Equality Act 2010.

Employees can also take some or all of their accrued holiday entitlement before starting maternity leave or immediately after their maternity leave ends.

How can I check if my holiday pay has been calculated correctly?

To check if your holiday pay has been calculated correctly, you should first look at your employment contract to understand your entitlement and how your holiday pay should be calculated.

Then, check your payslips for entries related to holiday pay. The amount you've been paid should match your entitlement.

You can also look at previous holiday pay periods and compare them to see if they are consistent.

If you have any questions or concerns about your holiday pay calculation, contact your payroll department or HR and ask for a detailed breakdown of how your holiday pay was calculated. This can help you understand the method used and identify any problems.

What should I do if my employer denies my holiday pay?

If your employer denies your holiday pay you should:

  1. Contact your line manager, HR department, or payroll team and politely request an explanation and resolution.

  2. Follow up with a written request asking for the matter to be addressed.

  3. Write a formal grievance detailing the denial of holiday pay.

  4. Contact Acas for guidance.

  5. Consult an employment lawyer for advice, or seek support from your union representative.

  6. File a claim with the Employment Tribunal.

Is there a time limit for claiming unpaid holiday pay?

The time limit for bringing a claim to an employment tribunal for holiday pay disputes is three months minus one day from the date of the last unpaid holiday or when the payment should have been made.

For multiple instances of unpaid holiday pay, the three-month period starts from the last deduction in the series.

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Can I carry over unused holiday leave to the next year?

Generally, statutory leave must be taken with the leave year and can't be carried over.

However, if you can't take your statutory leave because of long-term sickness or maternity leave, you can carry up to 20 days of this leave into the next leave year.

Sometimes, employers set their own rules for carrying over leave. For example, some may allow carry-over of a certain number of days. Therefore, you should check your employment contract or staff handbook for specific details.

How does holiday pay work if I leave my job or am dismissed?

If you leave your job, either voluntarily or through dismissal, you should be compensated for any unused holiday entitlement you have accrued up to your last working day.

This should be calculated at your normal rate, including regular overtime, commissions, or bonuses that are part of your usual earnings.

If you have taken more holiday than you have accrued, your employer may deduct the equivalent pay for the excess leave from your final pay.

What are my rights if my employer includes bank holidays as part of my annual leave?

Employers can include the eight recognised bank holidays in England and Wales within an employee's 28-day leave entitlement.

That means, if bank holidays are included, your 28 days cover regular leave and bank holidays, and you must use part of your statutory leave entitlement to take time off on these days.

If they are additional, you get 8 days plus bank holidays.

If you need to take leave for religious or cultural holidays not recognised as public holidays, you can request this leave. Your employers should consider these requests and make accommodations where possible.

What evidence do I need to support my holiday pay dispute?

Types of evidence you should collect to support your holiday pay dispute include:

  • A copy of your employment contract;

  • Your employer's policies on holiday leave and pay;

  • Payslips covering the period in question;

  • A copy of your P60;

  • A record of your holiday entitlement, number of days taken, and remaining balance;

  • Copies of leave request and approval;

  • Copies of emails or written requests related to holiday pay;

  • Meeting notes;

  • Timesheets.

Can my employer change the holiday pay policy without notice?

Changes to fundamental terms of your employment contract like holiday pay usually require mutual agreement between you and your employer.

In some cases, employers might argue that changes are needed for business reasons, such as economic pressures or restructuring. However, they still need to follow fair procedures and consult with employees.

Therefore, employers should consult with employees before making significant changes and provide reasonable notice before implementing new holiday pay terms as unilateral changes without this could constitute a breach of contract.

What happens if my employer goes into administration and owes me holiday pay?

If your employer goes into administration and you have outstanding holiday pay, you can claim this as part of your outstanding wages.

Employees are classed as preferential creditors for certain unpaid wages, including up to six weeks of holiday pay. This means you are prioritised over ordinary unsecured creditors but below secured creditors in the payment hierarchy.

If the company's assets aren't enough to pay preferential claims, you can apply to the National Insurance Fund for outstanding holiday pay.

How can a solicitor help me resolve a holiday pay dispute?

An employment solicitor can provide invaluable assistance in resolving a holiday dispute through:

  1. Evaluating your situation, providing legal advice, and outlining possible actions;

  2. Negotiating with your employer to achieve a fair settlement;

  3. Preparing, submitting, and representing your claim at an employment tribunal.

What are the potential costs involved in pursuing a holiday pay dispute?

Solicitor's fees can vary widely depending on their expertise and the complexity of the case. However, for certain employment matters solicitors may offer a Conditional Fee Agreement.

This means you only pay them if you win your holiday pay dispute.

No-win, no-fee arrangements, if appropriate for your case, can minimise upfront costs, making it easier to deal with holiday pay disputes.

Employment tribunal costs

There are no filing fees for bringing a holiday pay dispute to an employment tribunal.

Further, employment tribunals typically require each party to bear their own costs, so it's highly unlikely you will be ordered to pay the other party's costs even if you lose - unless you act unreasonably or bring a frivolous claim.

Alternative dispute resoltion

Acas' Early Conciliation services are free to use for both employees and employers.

At Lawhive, we aim to make legal help accessible and affordable for everyone. If you're facing a holiday pay dispute and are considering making an employment tribunal claim, contact us today to find out how we can support you.

Can I take my holiday pay dispute to an employment tribunal?

You can take your holiday pay dispute to an employment tribunal if:

  • You have been paid less than you are entitled to for your holiday leave;

  • You have not been paid at all for your holiday leave;

  • Your holiday pay has not been calculated according to your employment contract or statutory regulations;

  • Your employer has refused to allow you to take your accrued holiday entitlement.

Holiday pay claims are often based on breaches of the Working Time Regulations or breaches of your employment contract. However, before you file a claim with the employment tribunal, you have to tell Acas and engage in their Early Conciliation process.

If conciliation is unsuccessful or you do not wish to participate, Acas will give you an Early Conciliation certificate, which you need to go ahead with your claim to the employment tribunal.

How does my holiday entitlement change if I switch from full-time to part-time work?

If you switch from full-time to part-time work, your holiday entitlement should be adjusted on a pro-rata basis to reflect your new working hours.

Can my employer make deductions from my holiday pay?

Employers can make deductions from holiday pay if:

  • They are authorised in your employment contract;

  • You have given your consent in writing (e.g. to repay a loan);

  • You have taken more holiday leave than you have accrued by the time you leave your employment.

Any other deductions from holiday pay are considered unlawful, such as reducing holiday pay because of poor performance or to cover business losses not related to your work.

If you believe a deduction from your holiday pay is unlawful or incorrect, contact us today for a free case evaluation to discuss your situation.

How can Lawhive support your holiday pay dispute?

If you're facing a holiday pay dispute or unlawful deductions from your wages, our network of experienced employment lawyers is here to support you every step of the way.

Whether you need guidance on your entitlements, help with settlement agreement negotiations or representation in an employment tribunal, our network of experts can provide the personalised support you need.

Schedule a free case evaluation with our Legal Assessment Specialists today to discuss your holiday pay dispute and explore how we can assist you in securing your rightful holiday pay.

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