Rolling up holiday means paying an additional amount representing holiday pay for each pay period throughout the year, instead of paying holiday pay at the time annual leave is taken.
Rolling up holiday pay can simplify the administration of holiday pay for workers with irregular working patterns, however it has been unlawful under EU law.
Rolled up holiday pay is allowed for workers who fall within the definition of irregular hours or part-year workers. An employer that chooses to use rolled-up holiday pay must calculate it at a minimum rate of 12.07% of the worker's earnings during the pay period.
It is unlawful for employers to pay rolled-up holiday pay to other workers.
