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Government plans to legalise rolled up holiday pay

16 May 2023      Julia Ascott, Employment Taxes Specialist

The Department of Business & Trade has proposed to reduce Working Time Regulations reporting burdens by allowing rolled-up holiday pay “so that workers can receive their holiday pay with every payslip” (see this article from Rebecca Seeley Harris for more information), which will be a welcomed relief for many universities.

The government then issued the consultation Retained EU employment law reforms on 12 May with Proposal 2 setting out reforms of rolled up holiday pay stating that "We propose that rolled-up holiday pay should be paid at 12.07% of a worker's pay on each payslip".

We will therefore be asking for your input into this consultation, to the extent it covers rolled-up holiday pay.



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