| Comment | Following the case of Robinson-Steele v PD Retail Services and other cases [2006] in the European Court of Justice, rolled up holiday pay is not, strictly speaking, permitted; payment for holidays should be made when the actual holidays are taken.
The argument against the use of rolled up holiday pay is that workers are deterred from taking holiday as they are not being paid directly for it. The European Court urged EU member states to take necessary steps to end the practice. Notwithstanding the European Court’s stance, the UK government has not put in place legislation prohibiting the use of rolled up holiday pay, although it does in non-statutory guidance, state that any contract which includes rolled up holiday pay should be renegotiated.
(source: https://www.davidsonmorris.com/rolled-up-holiday-pay/#:~:text=What%20is%20rolled%20up%20holiday,their%20holiday%20is%20actually%20taken.)
So, it's not technically illegal yet in the UK per legislation, but if you went to ACAS they would very, very likely side with you and force the employer to reverse course. I would check out your options with ACAS https://www.acas.org.uk/ ... You could probably get this sorted using early conciliation service, which doesn't cost you anything. |
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