LRD guides and handbook October 2021

Health and Safety Law 2021

Chapter 10

Workers missing out on holiday pay

[ch 10: page 225]

Recent TUC analysis revealed that two million workers are not receiving their legal entitlement to holiday pay, missing out on £3.1 billion per year. At present, workers with a complaint about holiday pay have to take their employer to an employment tribunal. In the case of sick pay, there is a BEIS business department scheme to enforce its payment, although the TUC says this is underused, with no proactive enforcement. Workers must make a complaint and there is quite a lengthy process to go through.

It also says the current system for enforcing employment tribunal awards is not fit for purpose. Successful claimants must take further action to receive their award if the employer chooses not to pay. More than a third (35%) of successful claimants do not receive any compensation and it can cost a successful claimant over £320 to pursue the compensation they have been awarded.

The TUC welcomed new government proposals to enforce holiday pay, and sick pay, rights with new civil penalties, although there are no details of how this will be done and no timetable for the reforms. The government announced the change as part of its proposals for a “powerful new workers’ watchdog” to help crack down on abuses of workers’ (see Chapter 3).