Employment Law Guide
Holiday & Leave
Plain English. Always current. Written for the people who actually run venues.
TL;DR
UK holiday entitlement is 5.6 weeks (28 days for full-time staff) per year under the Working Time Regulations 1998. For irregular hours workers — including most zero-hours and casual hospitality staff — holiday accrues at 12.07% of actual hours worked per pay period, following changes introduced in April 2024. Rolled-up holiday pay is now legal for these workers. From April 2026, employers must keep holiday records for six years or face a potentially unlimited fine.
How much holiday are hospitality workers entitled to?
Every worker in the UK — full-time, part-time, zero-hours, agency — is legally entitled to 5.6 weeks of paid holiday per year under the Working Time Regulations 1998. For someone working 5 days a week, that's 28 days. For someone working 3 days, it's 16.8 days.
That's the statutory minimum. You can always offer more — you just can't go below it.
The entitlement itself hasn't changed in decades. What has changed — significantly — is how you calculate it for the kinds of workers hospitality actually employs.
Do employees have a right to bank holidays off?
No. There is no automatic legal right to bank holidays off in the UK. This surprises a lot of operators, but it's clearly stated in ACAS guidance on bank holidays.
Bank holidays can be included within the 28-day statutory minimum, or offered on top of it. Which one applies depends entirely on the wording in the employment contract — not on custom, not on what you've always done, and not on what the venue down the road does.
Why this matters for hospitality
Your venue is probably open on bank holidays. Your team is working Christmas Day, Easter Sunday, and the August bank holiday. That's the nature of the industry — but it means getting the contract wording right is worth ten minutes of your time.
The contract wording trap
If the contract says "20 days plus bank holidays" — staff are entitled to time off (or a day in lieu) for every bank holiday that falls in the leave year, however many there are.
If the contract says "28 days including bank holidays" — the entitlement is capped at 28. Bank holidays eat into that number. No surprises, no extra cost.
How many bank holidays are there in 2026/27?
For businesses running an April-to-March leave year, the 2026/27 period contains 10 bank holidays — two more than usual. This is because Easter 2027 falls in late March, putting both Good Friday and Easter Monday inside the same leave year as Easter 2026.
| Date | Bank Holiday |
|---|---|
| 3 April 2026 | Good Friday |
| 6 April 2026 | Easter Monday |
| 4 May 2026 | Early May Bank Holiday |
| 25 May 2026 | Spring Bank Holiday |
| 31 August 2026 | Summer Bank Holiday |
| 25 December 2026 | Christmas Day |
| 28 December 2026 | Boxing Day (substitute — 26th is Saturday) |
| 1 January 2027 | New Year's Day |
| 26 March 2027 | Good Friday |
| 29 March 2027 | Easter Monday |
If your contracts say "plus bank holidays" without specifying a number, you could owe your team two extra days this year. Worth checking now rather than discovering it in March.
Source: GOV.UK — Bank holidays
Free template:
Our Holiday Policy Template covers bank holiday wording, booking process, blackout periods, and carry-over rules — ready to customise for your venue.
DownloadCan my employer force me to work on a bank holiday?
Yes, provided the contract allows it. There is no statutory right to refuse work on a bank holiday. If someone is rostered to work and declines, it's treated the same as refusing any other shift. Most hospitality contracts already reflect this.
If your business is open on bank holidays, the standard approach is either: pay the normal rate and deduct a day from their holiday balance, or offer a day in lieu to take later.
How do you calculate holiday for zero-hours staff?
This is where most hospitality businesses trip up — and where the law changed significantly in April 2024.
Who counts as an "irregular hours worker"?
If the number of paid hours someone works in each pay period is wholly or mostly variable under their contract, they're an irregular hours worker. In hospitality terms: your barback who does 30 hours one week and 12 the next. Your events casual who works every weekend in summer and nothing in January. That's most of your team.
Source: GOV.UK — Definition of irregular hours and part-year workers
How does the 12.07% accrual method work?
Since April 2024, holiday entitlement for irregular hours and part-year workers is calculated as 12.07% of actual hours worked in each pay period.
Where does 12.07% come from? A full-time worker gets 5.6 weeks off out of 52. That leaves 46.4 working weeks. 5.6 ÷ 46.4 = 12.07%.
Example: Your KP works 80 hours in March. Their holiday accrual for that month is 80 × 12.07% = 9.66 hours (rounded to 10 hours).
In a quiet January where they only work 30 hours, they accrue 30 × 12.07% = 3.62 hours (rounded to 4 hours).
Holiday builds up as they work. More shifts = more holiday. Quiet months = less accrual.
Interactive tool:
Our Holiday Accrual Calculator lets you enter hours worked and instantly see the accrual figure.
Try itWhat is rolled-up holiday pay?
Since April 2024, employers can legally use rolled-up holiday pay for irregular hours and part-year workers. This means you pay their holiday entitlement as an uplift on every payslip, rather than paying them when they actually take time off.
The rate: 12.07% of total pay in each pay period, shown as a separate line on the payslip.
Example: Your server earns £1,200 in April. You add £144.84 (12.07% of £1,200) as rolled-up holiday pay. It has to be itemised separately — you can't bury it in their hourly rate.
The important bit: Even with rolled-up holiday pay, you still need to let them take the time off. Paying the money doesn't mean they forfeit the leave. They still get 5.6 weeks of actual time away from work — they've just already been paid for it.
Rolled-up holiday pay is optional and only available for irregular hours and part-year workers. You can't use it for regular-hours salaried staff.
Source: ACAS — Rolled-up holiday pay
What counts as "normal pay" for holiday pay?
Getting the entitlement right is one thing. Paying the correct amount is another — and this is where a lot of venues unknowingly underpay.
UK holiday entitlement has two layers:
- 4 weeks (from EU-derived law) — paid at the worker's normal rate
- 1.6 weeks (from UK law) — can be paid at basic pay only
For most hospitality businesses that don't distinguish between the two, paying everything at the normal rate is the simpler and safer approach.
What's included in "normal" pay?
Since January 2024, the law is clear on what goes into the "normal" rate for the 4-week EU entitlement:
- Regular overtime (if it's sufficiently regular and settled)
- Commission and performance-related pay linked to tasks or output
- Shift premiums and weekend rates
- Compulsory overtime the worker is required to work
What's not included: employer pension contributions, expenses, benefits in kind, one-off irregular bonuses.
Do tips count toward holiday pay?
This is evolving. The 2025 Palanki v The Big Table Group tribunal ruling found that tronc payments should be included in holiday pay where they flowed through the employer's payroll without a genuinely independent tronc structure. It's not yet binding law, but the direction is clear. See our full breakdown in the Tips, Tronc & Service Charges guide.
What is the 52-week reference period?
If you're not using rolled-up holiday pay, you calculate what a week's pay is worth by looking back over the worker's previous 52 paid weeks (ignoring any weeks where they weren't paid at all) and averaging their earnings.
This matters in hospitality because December and summer will be high-earning months, and January will be quiet. The 52-week average smooths this out so holiday pay reflects what someone actually earns across the year — not just the slow period when they happen to book time off.
Source: GOV.UK — Calculate holiday pay
Can employees carry over unused holiday?
The default position: statutory holiday should be taken in the leave year it's earned. Use it or lose it.
But there are important exceptions:
When carry-over is protected
Workers are entitled to carry over untaken holiday into the next leave year if they couldn't take it because of:
- Maternity or family-related leave — carry over all 5.6 weeks
- Sickness — carry over all 5.6 weeks (this can stack up, so it's worth staying on top of)
For irregular hours workers, carry-over in these circumstances is capped at 28 days.
Does holiday accrue during sick leave?
Yes. Holiday continues to accrue while someone is off sick. And if they couldn't take their holiday because of the illness, they're entitled to carry it over. See our Sick Pay guide for the full picture.
The employer's role in managing leave
Here's the bit that catches people out: if a team member doesn't take their holiday, the employer has a legal duty to have actively encouraged them to use it, informed them they'd lose it if they didn't, and given them a genuine opportunity to take it.
If you can't show you did those things, a tribunal may find the worker was entitled to carry the leave over regardless.
In practice: A simple reminder when someone has untaken leave goes a long way. Put the balance on their payslip. Flag it in a team meeting.
Source: ACAS — Carrying over holiday
What are the holiday record-keeping requirements from April 2026?
From 6 April 2026, employers need to keep records showing:
- The correct amount of holiday has been given
- The correct payments have been made for that leave
- Payment in lieu for unused holiday (including carry-over) has been paid on termination
There's no prescribed format — spreadsheets, software, paper — whatever works. But the records need to be kept for six years.
Non-compliance is a criminal offence with a potentially unlimited fine. The new Fair Work Agency has enforcement powers.
This doesn't need to be complicated — it just needs to be consistent and retrievable.
Free template:
Our Employee Holiday Record Template tracks entitlement, bookings, and remaining balance — designed for the 6-year retention requirement.
DownloadHow much holiday do part-time workers get?
Part-time workers get the same 5.6 weeks — just calculated against their actual working pattern.
Example: A part-time server works 3 days per week. Their holiday entitlement is 3 × 5.6 = 16.8 days per year. You can round this up to 17, but not down.
If they work irregular days, use the hours-based 12.07% accrual method instead.
Bank holiday trap for part-timers: If your full-time staff get 20 days + 8 bank holidays (28 total), your part-timers on 3 days/week should get 16.8 days total — not 12 days plus all 8 bank holidays. Pro-rate the bank holidays too, or you'll end up giving part-timers proportionally more holiday than full-timers.
Source: GOV.UK — Holiday entitlement rights
Key dates
| Date | What changed |
|---|---|
| January 2024 | New rules on what's included in "normal" holiday pay. Carry-over provisions codified. |
| April 2024 | 12.07% accrual method for irregular hours workers. Rolled-up holiday pay legalised. |
| April 2026 | Record-keeping duty: 6-year retention, criminal offence for non-compliance. Fair Work Agency begins enforcement. |
Common questions
Yes, but you need to give notice equal to the length of leave requested. If someone asks for 10 days off, let them know at least 10 days before the leave would have started.
You can also set blackout periods — around Christmas or during peak season — but these should be in the contract or staff handbook, communicated upfront, not sprung on people mid-season.
Yes. If someone has accrued holiday they haven't taken, you pay them for it when they leave. Calculate what they've accrued up to their leaving date, subtract what they've already taken, and pay the balance.
If they've taken more holiday than they've accrued, you can deduct the overpayment from their final pay — but only if there's a clause in the contract allowing this. Worth getting right in your template contract.
Yes. You can require workers to take holiday on specific days, provided you give notice of at least twice the length of the leave. For 3 days off between Christmas and New Year, that means at least 6 days' notice.
If this is your standard arrangement, put it in the contract from day one.
If someone is a worker (not genuinely self-employed), they accrue holiday from day one. Trial shifts where the person is doing real work, under your direction, and you're benefiting from their labour — that's work. Holiday accrues.
If trial shifts run longer than a couple of hours, you should be paying for them. And if you're paying, holiday accrues.
Suparota tracks holiday accrual automatically — for salaried staff on fixed allowances and for hourly and zero-hours workers using the 12.07% method. Managers approve requests, see team availability before saying yes, and the system calculates balances in real time. When employment law changes, the software updates. You don't have to learn the maths — you just approve the request.
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Sources & legislation referenced
- Working Time Regulations 1998
- Employment Rights Act 2025
- GOV.UK — Holiday entitlement rights
- GOV.UK — Holiday pay and entitlement reforms from January 2024
- GOV.UK — Employment Rights Act 2025 factsheets
- GOV.UK — Bank holidays
- ACAS — Holiday entitlement
- ACAS — Irregular hours and part-year workers
Last reviewed: 4 April 2026. This guide is for general information only and does not constitute legal advice. For specific situations, consult an employment law specialist.
See also:
- Tips, Tronc & Service Charges → — including how the Palanki ruling connects tronc to holiday pay
- Sick Pay → — the April 2026 SSP changes, and holiday accrual during sickness
See also
- Tips, Tronc & Service Charges → — including how the Palanki ruling connects tronc to holiday pay
- Sick Pay → — the April 2026 SSP changes, and holiday accrual during sickness
Last reviewed: 4 April 2026. This guide is for general information only and does not constitute legal advice. For specific situations, consult an employment law specialist.