How to Challenge Your Employer on Holiday Pay

Step 1 — Calculate what you should be getting

Before raising anything with your employer, work out what you believe you are entitled to. Use our calculator to get your statutory minimum based on your hours, days, and nation. Check your contract to see if your employer provides anything above the statutory minimum (in which case, that is what you are owed).

Keep a note of:

• The calculation and how you reached it
• What you have actually been given (payslips, holiday statements, contract)
• The difference between the two figures

Step 2 — Speak to your employer informally first

Many holiday disputes arise from genuine misunderstandings. Before making a formal complaint, speak to your line manager or HR — there may be a simple explanation. Put your concern in writing (email is fine) so there is a record.

In your email, briefly explain:

• What you believe your entitlement is (with the calculation)
• What you have been receiving
• That you believe there may be an error and would like them to review it

Give them a reasonable time to respond — typically 5 to 10 working days.

Step 3 — Escalate formally if they do not resolve it

If the informal conversation does not resolve the issue, put your complaint in writing to your HR department or a senior manager. State:

• The specific underpayment and its value
• The dates it applied to
• That you formally request they correct the underpayment and pay the difference
• A reasonable deadline for response (e.g. 14 days)

Keep copies of all correspondence.

Step 4 — Get free advice

If your employer disputes the issue or will not engage, get free advice before taking further action:

• ACAS (0300 123 1100) — free, confidential employment advice. They can also offer early conciliation if the matter proceeds to a tribunal
• Citizens Advice — can help you understand your rights and draft formal letters to your employer
• Trade union — if you are a union member, your union can advise and represent you
• Employment law solicitor — many offer a free initial consultation and may work on a no-win-no-fee basis for tribunal claims

Step 5 — Employment tribunal

If your employer will not correct the underpayment, you can bring a claim for unlawful deduction from wages at an employment tribunal. Holiday underpayment is a form of unlawful deduction from wages under the Employment Rights Act 1996.

Before making a tribunal claim, you must:

• Contact ACAS for early conciliation — this is mandatory and ACAS will attempt to resolve the dispute first. Early conciliation is free and can often result in a settlement without going to a tribunal
• Allow ACAS time to attempt conciliation before proceeding

Time limit: You have 3 months less a day from the date of the underpayment (or the last underpayment if it is ongoing) to bring a tribunal claim. This deadline is strictly enforced — if you miss it, the tribunal will generally refuse to hear the case.

What you could recover

If your claim succeeds, you can recover:

• The amount of the underpayment — the difference between what you were given and what you should have received
• For ongoing underpayments, up to 2 years' worth of holiday pay (for claims presented to a tribunal within 3 months of each underpayment)

Employment tribunal fees were abolished in 2017 — it is free to bring a claim.