Rolled-up holiday pay
Rolled-up holiday pay is holiday pay added to each pay packet instead of being paid when the worker takes leave.
The method is available to a narrow group
In Great Britain, rolled-up holiday pay can currently be used for qualifying irregular-hours and part-year workers. It is not a general alternative for everyone whose pay varies, and it should not be applied to regular-hours workers simply because payroll finds it convenient.
Confirm the worker's statutory classification before selecting the method. The GOV.UK holiday-pay guidance explains the current eligibility and calculation rules.
Show holiday pay separately
Rolled-up holiday pay is added to pay for work in each pay packet rather than paid when leave is taken. Calculate it using the current statutory method and show the holiday-pay amount separately on the payslip. Do not hide it inside a higher hourly rate with no explanation.
The payment method should be agreed and communicated clearly. Keep the worker classification, calculation and payslips that support each payment.
Leave still has to be taken
Continue to record entitlement, accrual and leave taken. A worker receiving holiday pay with each pay packet still needs a genuine opportunity to take their statutory leave.
Northern Ireland does not use the current Great Britain permission. Current nidirect guidance says rolled-up holiday pay should not be used and holiday pay should be paid when the worker takes leave. Keep jurisdiction inside the payroll rule rather than treating one method as UK-wide.
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