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 02 July 2007
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Rolled-up holiday pay

Rolled-up Holiday Pay

Following a European Court of Justice (ECJ) judgment on 16 March 2006, (1) Rolled-Up Holiday Pay (RHP) is considered unlawful and payment for statutory annual leave should be made at a time when leave is taken.

Employers should have taken steps to renegotiate contracts involving RHP to eliminate this practice. Any payments in respect of annual leave, additional to wages or salary, made during this transitional period in a transparent and comprehensible manner, may be offset against any future liability to make payment in respect of annual leave, to avoid any overpayment of holiday pay.


(1) Robinson-Steele v PD Retail Services, Clarke v Frank Staddon Ltd, Caulfield & Others v Hanson Clay Products Ltd (formerly Marshalls Clay Products Ltd), 16 March 2006   

Paid Annual Leave: Elimination of Rolled Up Holiday Pay

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