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Holiday Pay

Number of days

European Union law states that all full time employees are entitled to 28 days paid holiday per year. This includes bank holidays and other company compulsory shut down days.

Rate of holiday pay

One issue which has been clarified by a legal case in November 2014, is the rate of pay which employees are entitled to when taking annual leave.

In situations where employees receive guaranteed or normal non-guaranteed overtime, employers are required to pay an hourly rate for holiday pay which takes into account average levels of overtime pay. The overtime element of the holiday pay should be calculated by taking the average overtime pay from the most recent 12 weeks earnings.

Action plan

For further assistance in this matter, or any other issues relating to owner managed businesses please phone Shacklefords Chartered Accountants on 0121 448 7466 or e mail