Zero-hours contract holiday pay: how it works

Yes, you get paid holiday on a zero-hours contract. GOV.UK says almost all people classed as workers are entitled to 5.6 weeks' paid holiday a year, and for zero-hours work it builds up as you work: 12.07% of the hours you work in each pay period. Work 30 hours in a week and you build up 4 hours of holiday. This is for leave years that start on or after 1 April 2024.

Your employer then pays that holiday in one of two ways: at your average pay over the last 52 weeks in which you were paid, or, if they choose, as rolled-up holiday pay added to your pay each time. This guide explains both.

How your holiday builds up

If the hours you work in a pay period often or always change, GOV.UK treats you as an irregular-hours worker. A zero-hours contract is the usual example. Your holiday is worked out like this (GOV.UK):

1. Take the hours you worked in the pay period.
2. Divide by 100 and multiply by 12.07.
3. Round to the nearest hour. Half an hour or more rounds up.

For example, 30 hours worked is 3.621 hours of holiday, which rounds up to 4 hours. That is the GOV.UK worked example. You can take that leave from your next pay period.

The table shows the same sum for other pay periods. It is worked out by the SumLark Holiday Entitlement Calculator.

Where 12.07% comes from. Statutory holiday is 5.6 weeks a year. A year has 52 weeks, and 52 minus 5.6 leaves 46.4 working weeks. GOV.UK says 12.07% of 46.4 is 5.6, so building up 12.07% of the hours you work gives you your 5.6 weeks across the year (GOV.UK).

Three more points from the official pages:

• The most statutory holiday anyone can build up in a year is 28 days.
• If your contract gives you more than the statutory minimum, the percentage is higher. GOV.UK's example is 6 weeks of leave, which gives 13.04%.
• Acas says holiday builds up on the last day of each pay period.

How your holiday is paid

You are entitled to a week's pay for each week of statutory leave you take. For irregular-hours workers, GOV.UK says that pay is your average pay from the previous 52 weeks, counting only the weeks in which you were paid (GOV.UK).

• If you were not paid in a week, count back another week, so the average covers 52 weeks in which you were paid. You can count back a maximum of 104 weeks.
• If you have less than 52 weeks of pay, use the average for the full weeks you have worked.
• A week usually runs from Sunday to Saturday.
• Acas says the average includes commission and regular overtime paid in the last year.

For example, suppose you were paid £10,400 across your last 52 paid weeks. The average is £200 a week, so a week of holiday pays £200. (This is our own example to show the sum, not a rate.)

Rolled-up holiday pay

Some employers pay holiday as an extra amount with each wage instead. This is called rolled-up holiday pay. The rules:

• It is allowed only for irregular-hours and part-year workers. For regular-hours workers, an employer cannot include holiday pay in the hourly rate (GOV.UK).
• It cannot be used if your leave year began on or before 31 March 2024.
• The employer chooses whether to use it.
• It must be paid at the same time as the pay for the work, and shown as a separate payment on your payslip (Acas).
• Acas says it must be at least 12.07% of your total pay in the pay period. Its example: pay of £1,000 in June gives £120.70, and pay of £500 in July gives £60.35.

If your contract ends, Acas says your employer must pay any holiday you have built up and not taken, unless you are paid rolled-up holiday pay.

Leave years that started before 1 April 2024

The 12.07% accrual system and rolled-up pay apply to leave years that begin on or after 1 April 2024. If your leave year began on or before 31 March 2024, your employer does not need to use the new system until your leave year renews (GOV.UK). After that, the new rules apply.

Sickness, family leave and carry-over

GOV.UK has a way to work out the holiday you build up while you are on family leave or off sick, based on your average weekly hours over the previous 52 weeks. You can also carry over up to 28 days of leave you could not take because of sickness, as long as you take it within 18 months of the end of the leave year in which it built up (GOV.UK).

Asking for holiday, and if something looks wrong

Booking. GOV.UK says the notice you give is at least twice as long as the leave you want, plus 1 day: 3 days' notice for 1 day off. An employer can refuse or cancel a request if they give as much notice as the leave you asked for, plus 1 day. They cannot refuse to let you take your holiday at all. If your contract says something different about notice, the contract applies (GOV.UK).

Check your payslip. Rolled-up holiday pay must be a separate line. GOV.UK also says that from 6 April 2026 employers must keep detailed records of annual leave and holiday pay for at least 6 years.

If you think it is wrong:

1. Explain your concern to your employer first. Acas says to raise it informally and, if that fails, to raise a grievance.
2. Contact the Acas helpline on 0300 123 11 00 (Monday to Friday, 8am to 6pm, according to GOV.UK).
3. Acas offers free early conciliation before a claim to an employment tribunal. GOV.UK says it is voluntary: you and your employer must both agree.

Frequently asked questions

Can I go on holiday on a zero-hours contract?

Yes. You can take the holiday you have built up, from your next pay period. Ask with the notice described above. Your employer can refuse a date, but not refuse you holiday altogether.

Do zero-hours contracts get annual leave?

Yes. GOV.UK says almost all people classed as workers are entitled to 5.6 weeks' paid holiday a year, and Acas lists holiday and holiday pay among the rights of a zero-hours employee or worker.

Am I entitled to holiday pay if I have no contract?

The right belongs to people classed as workers. The GOV.UK holiday pages do not say a written contract is needed. Whether you count as a worker is a separate question, which GOV.UK covers under employment status. If you are not sure, ask the Acas helpline.

Why is 12.07% used for holiday pay?

Because 5.6 weeks of holiday is 12.07% of the 46.4 weeks left when you take the 5.6 weeks off a 52-week year, according to GOV.UK.

How is holiday pay worked out?

Either as your average pay over the last 52 paid weeks, or as rolled-up holiday pay if your employer uses it. Both are explained above.