Holiday Pay: Are we missing out on cash we’re owed?

Plenty of us are still missing out on money we’re legally entitled to over the holidays.

Holidays should be the best time of the year, feet up, sunshine on our face, and enjoying a well-earned break. But for many of us, holiday pay has been a grey area for years. That’s especially true for those of us in the gig economy, like delivery drivers to cleaners and cabbies.

The truth? Plenty of us are still missing out on money we’re legally entitled to.

Every one of us who works in the UK has the right to paid time off. That includes those of us on zero-hours contracts or picking up shifts through apps. The law says we should get 5.6 weeks of paid holiday per year – that’s 28 days if we’re full-time.

If we’re part-time, it’s worked out pro-rata. So if we only work three days a week, we’re still owed 16.8 days’ paid holiday.

Here’s the problem: many of us don’t realise we count as “workers” under the law. That means bosses and big firms have been getting away with paying us less than we should be getting.

Big court wins

We’ve fought back, and won. Uber drivers, for example, took their case all the way to the Supreme Court. The judges ruled they were workers, not self-employed contractors. That meant holiday pay (and minimum wage) applied.

Other companies have been forced to pay up too. If we’re tied into set shifts, or if the company controls how we work, there’s a good chance we count as “workers”, even if our contract says otherwise.

How holiday pay is worked out

Holiday pay should be based on our average weekly earnings. For casual staff, that means looking at what we earned over the last 52 weeks we actually worked. Overtime, bonuses, and regular commission should be included too.

To keep it simple: if we’ve been averaging £400 a week, that’s what a week’s holiday pay should look like. We shouldn’t accept bosses trying to fob us off with just basic wages or a lower flat rate.

Spotting the signs we’re missing out
  • We don’t see any holiday pay at all.
  • We’re told “it’s included” in our wages, but it’s not shown clearly.
  • We’re only paid for our basic hours, not our average take-home.

If any of that sounds familiar, we need to challenge it.

What we can do
  1. Check our payslips. Is there a line showing holiday pay? If not, that’s a red flag.
  2. Ask the boss or agency. Put it in writing so we’ve got proof.
  3. Get advice Citizens Advice and ACAS can help for free. If we’ve been short-changed, they can help us take it to an employment tribunal.

Image: Shutterstock/Rembolle

About Steve Faragher

Steve is an experienced journalist and storyteller who has been with Quids in! since the beginning.

View all posts by Steve Faragher →

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