What rolled-up holiday pay is  

Rolled-up holiday pay is when you include an amount for holiday pay in your worker’s hourly payrate, rates, instead of paying holiday pay when your employeesworker takes annual take annual leave.leave. 

For leave years beginning on or after 1 April 2024, you must only offer rolled-up holiday pay to employees who fall within one of the following categories:categories: 

• irregular hours workers – people whose paid hours in each pay period are wholly or mostly variable under the terms of their contractcontract 
• part-year workers – people whowho are are only required toto work work part of the year, and there is a gap of at least a week in which they do not work and are not paidpaid 

Read the Department of Trade and Industry’s guidance for more information about this.

You will be breaking the law if you use rolled-up holiday pay for anyone who does not fall into these categories.categories. 

Read the Department of Trade and Industry’s guidance for more information about this. 

Your responsibility as an SIA approved contractorcontractor 

In most cases we expect workers to receive their holiday pay when thethey holidaytake istheir taken.holiday. 

If you use rolled-up holiday pay, you must demonstrate that you comply with the law, including the Working Time Regulations 1998, and associated government guidance. You shouldmust identifydo this for: 

• your own employees 
• the employees of any sub-contractors you use 
• any operatives provided to you by a labour provider 

You should identify any use of rolled-up holiday pay in your self-assessment. Your assessor will discuss this with you as part of their assessment planning.planning. 

What your assessor will look for 

If you use rolled-up holiday pay, youyour mustassessor demonstratewill thatexpect you complyto: 

• be up withto date with the latest relevant law and associatedguidance 
• be guidance.open Youwith mustthem doabout this for your ownuse employees and those of anyrolled-up sub-contractorsholiday youpay 
• show use.that Youyour mustapproach alsois dolegal thisand for any operatives provided to you by a labour provider.
  well-managed 

What your assessor will look for

Your assessor will check that you:you: 

• correctlycorrectly determine the determine the type of workers eligible for rolled-up holiday paypay 
• effectively communicate your approach so that workers understand how thisthis impacts them – impacts them - this should include how you calculate holiday pay,pay and what it covers (such as overtime or commission) 
• separatelyseparately identify the identify the amount of holiday pay on payslipspayslips 
• make sure that holiday pay is included in your workers’ gross pay and is subject to tax and National Insurance payments 
• regularly encourage workers to take holiday and use their full entitlement each yearyear 
• reduce any barriers to taking holiday and do not discriminate or disadvantage workersworkers 

Your

Evidence assessor will raise an improvement need if you doshould not meet our requirements. If this happens, you must do one of the following:

have 

• stop using rolled-up holiday pay
• address any areas where you are not complying with the law

TheYour assessor willmay conductask a re-visit to confirm what you have done.see: 

Relevant evidence may include one or more of the following:

• full staff lists showing thewho numberreceives of workers receiving rolled-up holiday paypay 
• payslips showing separation of holiday pay from working hourshours 
• details of the hours on which rolled-up holiday pay is basedbased 
• auditcalculations recordsused demonstratingto thatwork out holiday pay 
• audit records demonstrating that holiday entitlement and pay is operated correctlyis operated correctly 
• a holiday policy and procedure explaining how you manage holiday entitlement and paypay 
• communications to staff on how you manage holiday pay (for example, in a company handbook, letters of employment, induction materials)materials) 
• feedback from staff toto check that verify that they understand how their holiday entitlement isis administered and administered and that they receive the correct holiday paypay 
• training records to show that individuals responsible for administering holiday pay have hadhad appropriate appropriatetraining 

Your trainingassessor may speak to staff affected by your rolled-up holiday pay arrangements. 

What happens if you do not comply 

If you do not meet our requirements, your assessor will raise an improvement need. If this happens, you must do one of the following: 

• stop using rolled-up holiday pay 
• address any areas where you are not meeting our requirements 

AYour re-visitassessor will includearrange speakinga re-visit to membersconfirm ofwhat staffyou affectedhave bydone. yourIf arrangements.you need more than 6 weeks to make changes, you must get approval from us.