A woman has explained how she recovered more than £12,000 in outstanding holiday pay – and experts are warning there are thousands more who could be missing out on funds they are legally entitled to. Joanne, 59, lives in Scotland and is employed in financial services. She stepped down from her full-time position back in 2021 but remained with the same firm as a casual employee.
Then in 2023, she returned part-time, working approximately 25 hours weekly and never once considered holiday pay. That changed last July after discovering a success story in the Money Saving Expert weekly email. “I saw it and thought, ‘I’m on a zero-hours contract – I wonder if this applies to me,'” she told Money Saving Expert. Following a review of her terms and an email to HR, she discovered she was entitled to over £12,000 just months afterwards.
“I nearly fell over, I was absolutely flabbergasted,” she added. The lump sum appeared in her December pay slip, shortly after she had used a chunk of her pension savings for a private hip replacement.
Holiday pay is often overlooked, particularly for part-time, casual or zero-hours workers. By law, most employees are entitled to a minimum of 5.6 weeks paid annual leave, and any unused holiday must be compensated if you leave employment.
The Daily Express has put together a guide on how you can verify whether you’re entitled to money from any unused holiday leave. You could be sitting on a goldmine.
Check your entitlement
Whether or not you qualify depends on your employment status. If you get payslips listing hours, deductions, and pay, you’re likely entitled as an ‘employee’ or ‘worker’ – full-time, part-time or zero-hours.
If you don’t, you may be self-employed or in an informal ‘cash in hand’ role. Check your contract or ask your employer, or get guidance from Acas.
Work our how much your owed
Employees and workers are legally entitled to at least 5.6 weeks’ paid holiday per year. If your hours vary, use the Government’s ‘Calculate holiday entitlement’ tool. Holiday pay is taxable, so any payout will be subject to Income Tax and National Insurance.
Talk to your employer
Once you know your entitlement, ask for the time off or unpaid leave to be paid. Chrissy Bell, senior advisor at Acas, told Money Saving Expert: “Talking to the employer informally might be enough to highlight the issue and get it resolved.”
If not, formal complaints or employment tribunals are an option, but always get advice first.
Joanne’s story demonstrates just how straightforward it can be to claim what’s rightfully yours. Even modest sums can build up to life-changing wads of cash.