The Working Time Regulations (the regulations) set out the minimum entitlement to paid holiday for all workers as 5.6 weeks, which equates to 28 days per-year for a worker on a five-day working week. However, a worker’s contract may entitle a worker to more generous periods of paid holiday, more generous payment terms or different ways that workers can exercise their holiday rights.
Employers must take care to comply with both the regulations and, if bestowing a greater holiday entitlement upon the worker, the worker’s contract. To fail to do so is to risk the worker bringing a claim for unlawful deduction of wages under s 23 of the Employment Rights Act 1996 (ERA 1996) in respect of any outstanding holiday pay the worker feels they are owed.
Such a claim can be brought either in relation to a failure to pay which occurs over a single occasion or over a period of time, which amounts to a series of deductions. Per the Deduction from Wages (Limitation) Regulations 2014, a worker will have two years from the date of the (latest) failure, in which to bring a claim. A worker may separately or additionally bring a claim under reg 30 of the regulations if an employer has refused to grant the worker to annual leave in which they are entitled, which must be brought against the employer within three months of the (latest) failure to pay.
Should a tribunal rule that an employer has contravened either s 23 or reg 30, the tribunal will make a declaration to that effect and may order...
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