Rolled-up and zero-hours holiday pay when you leave a job

Who these rules are for

Since 2024, the law has a separate method for two groups WTR 1998, reg. 15B:

• Irregular hours workers: the paid hours you work in each pay period are, under your contract, wholly or mostly variable. A zero-hours contract can fall in this group.
• Part-year workers: you are contracted to work only part of the year, with periods of at least a week that you do not work and are not paid for. Term-time work is a common example.

The method applies to leave years that started on or after 1 April 2024. If your current leave year started earlier, the old rules apply to it, and this guide does not cover them.

If you work regular hours, full time or part time, this method does not apply to you. Your holiday is worked out in days, as a share of 5.6 weeks a year: see how to calculate holiday pay when you leave.

How holiday builds up: 12.07%

At the end of each pay period, you build up holiday equal to 12.07% of the hours you worked in that period reg. 15B(3).

The figure comes from the statutory 5.6 weeks of holiday, spread over the 46.4 weeks of a year when you are not on holiday: 5.6 ÷ 46.4 ≈ 12.07%.

Each period is rounded to the nearest hour: less than 30 minutes counts as 0; 30 minutes or more counts as a full hour reg. 15B(5).

Hours worked in the pay period	12.07%	Holiday built up
30	3.621 hours	4 hours
4	0.4828 hours	0 hours
5	0.6035 hours	1 hour
37.5	4.52625 hours	5 hours

You cannot build up more than 28 days in a leave year under this method reg. 15B(4). The cap is in days, and the law does not say how to convert it into hours for every working pattern. If your total gets close to it, check it with Acas or an adviser.

Different rules apply while you are on sick leave or on statutory leave such as maternity leave. This guide does not cover them.

What is rolled-up holiday pay?

Normally, you are paid when you take holiday. Rolled-up holiday pay is different: your employer adds 12.07% to your pay for the work you do, and pays it at the same time as that pay reg. 16A(2)–(3).

It is allowed only if all of these are true:

• you are an irregular hours or part-year worker;
• the holiday pay is paid with your pay for each pay period;
• it is shown as a separate amount on your payslip reg. 16A(7).

For regular-hours workers, full or part time, GOV.UK says your employer cannot include holiday pay in your hourly rate.

With rolled-up holiday pay, you still take time off. You are simply not paid again for it, because the holiday was paid as you worked.

What should be paid when I leave?

Leaving is the only time holiday can be replaced by a payment reg. 15B(6). GOV.UK says untaken statutory holiday must be paid even if you are dismissed for gross misconduct.

Your situation	What is usually due at the end
No rolled-up holiday pay	Hours built up, plus any carried over, minus hours taken, at your average hourly rate
Rolled-up holiday pay shown as a separate amount on every payslip	In principle, nothing more for those hours: the holiday was paid as you worked
Rolled-up holiday pay not shown on payslips, or only on some	Not clear-cut: keep your payslips and ask Acas or an adviser
Rolled-up holiday pay used although your hours are regular	Not allowed for regular hours; what you are owed is a question for Acas or an adviser
Leave year started before 1 April 2024	Old rules; not covered here

If you took more holiday than you built up, your employer must not take money from your final pay for it unless you agreed to that in writing beforehand.

How is the hourly rate worked out?

For irregular hours and part-year workers, holiday is paid at your average pay over the last 52 weeks in which you were paid. Weeks with no pay are skipped, and you count back further, up to 104 weeks. If you have been paid for fewer than 52 weeks, GOV.UK says to use the average for the full weeks you have worked.

The figures are gross, before tax and National Insurance.

Worked example: £784.00

• Paid weekly. Leave year started after 1 April 2024.
• 20 pay weeks of 30 hours each before leaving.
• Holiday taken: 24 hours.
• Average rate over the reference period: £14 an hour.
• No rolled-up holiday pay on the payslips.

1. Built up per week: 30 × 12.07% = 3.621 hours, rounded to 4 hours.
2. Built up in total: 20 × 4 = 80 hours.
3. Still due: 80 − 24 = 56 hours.
4. Holiday pay: 56 × £14 = £784.00.

If every payslip had shown a separate rolled-up holiday pay amount, the holiday pay due on leaving for those hours would, in principle, be £0.00.

How to check your payslips

• Look for a line such as “holiday pay” or “rolled-up holiday pay” in every pay period.
• Check that it is about 12.07% of the pay for the work done in that period.
• On the final payslip, look for a separate line for untaken holiday.
• Keep every payslip: you need the hours, the pay and the holiday lines.

If you are not sure whether you are an irregular hours worker, look at your contract: the test is whether your paid hours are wholly or mostly variable under it.

What if my holiday pay is missing?

Unpaid holiday pay on leaving is usually claimed as an unlawful deduction from wages ERA 1996, s.23.

1. Put it in writing. Set out the hours built up, the hours taken, the rate and the amount. Ask for payment by a set date.
2. Raise a grievance if you prefer. See the grievance letter guide.
3. Contact Acas for early conciliation before any tribunal claim.

Mind the time limit. It runs from the date of the payment that was short. If that payment was on or after 1 October 2026, you have 6 months minus 1 day; if it was earlier, 3 months minus 1 day. A grievance does not pause it. A tribunal also cannot look at deductions dated more than 2 years before the claim. The tribunal time limits guide shows how to count.

Northern Ireland

Northern Ireland has not adopted the 12.07% method or rolled-up holiday pay, and has its own rules. This guide covers England, Wales and Scotland only. See nidirect.

Next steps

1. Check, free. The holiday pay calculator applies 12.07% and the rounding to each pay period, takes off the hours you took, handles rolled-up holiday pay, and gives an amount in pounds. The final pay checker puts it next to your wages and notice pay.
2. Claim in writing. If holiday pay is missing, you can prepare a final pay claim letter yourself, with the calculation set out: £9, or £19 with a dated follow-up letter and reminders.
3. Next step. A free Acas preparation sheet lists what Acas will ask, and the early conciliation guide explains the steps. Acas, Citizens Advice, a trade union or a solicitor can also help you.