Holiday pay
- Holiday pay
- Pensions
How is ongoing holiday pay calculated and paid?
Associates with a worker contract are entitled to holiday pay on top of qualifying fees. All fee types qualify for holiday pay apart from cancellation fees and pre-appointment training.
Holiday pay is calculated at 12.07% of qualifying fees paid in a period. For example, if you submit a claim for five days' work at the daily rate of £325, you’re entitled to holiday pay of £325 x 5 x 12.07% = £196.14. You will receive “rolled-up” holiday pay periodically, soon after you are paid your fees. It’s not connected to when you choose to take holiday. No further payments will be made at the time you take holidays.
The figure of 12.07% for holiday pay is derived from the minimum statutory allowance for workers of 5.6 weeks' paid holiday per year. Subtracting 5.6 weeks from 52 weeks gives 46.4 working weeks in a year. 5.6 weeks is the equivalent of 12.07% of the full number of working weeks in a year. This method of calculation is in line with changes to the Working Time Regulations introduced on 1 January 2024: Holiday pay and entitlement reforms from 1 January 2024 - GOV.UK.
Contractual holiday pay came into effect on 1 July 2025 and is currently paid monthly in arrears, in the month following the related fee payment. You will receive a separate remittance advice for each holiday payment made.
Am I entitled to retrospective holiday pay?
Associates who were contracted in a worker role on or after 1 January 2025 are eligible for retrospective holiday pay on top of qualifying fees.
Our initial historic holiday pay offer was made in 2025 and covered fee earnings from 1 January 2023 to 30 June 2025. We wrote individually to eligible associates asking if they wished to receive this holiday payment and all those who responded have been paid.
Following recent legal developments, we have decided to offer eligible associates a further holiday payment covering fees back to the start of their contracts. To qualify for this payment, associates must have been under contract in a worker role on or after 1 January 2025. We are in the process of extracting the data needed to calculate these extended holiday back payments and expect to be in a position to make payments before the end of 2026.
The rate of retrospective holiday is paid is determined by case law. For earnings after 1 January 2023, the applicable rate is 12.07%. For earlier periods, the rate is 8.33%.
