LRD guides and handbook February 2015

Pay: getting it right - bargaining information for union reps

Chapter 7

Rolled-up holiday pay

[ch 7: page 64]

Holiday pay should be paid at the normal time that the employee gets paid. Employers should not use any form of “rolled-up pay”, where holiday pay is staggered over the rest of the year. This practice breaches the Working Time Directive which requires that workers are paid for their holiday at the time that they take it (Robinson-Steele v RD Retail Services Ltd, Clarke v Frank Staddon Ltd and Caulfield & others v Hanson Clay Products Ltd (formerly Marshalls Clay) C-131/04 and C257/04 [2006] IRLR 386).