Holiday Pay Rights: Accruals During Maternity Leave and Sickness Absence (UK)

Holiday pay is really important for people who work in the UK.. A lot of people do not understand it. This is especially true when someone is on maternity leave or long-term sickness absence. People who work are not sure if they still get holiday time when they are not working. Employers also have a time following the rules for holiday pay. People who work and employers need to know about holiday pay when someone’s on maternity leave or sick, for a long time. Holiday pay is something that people who work in the UK should know about.

UK employment law is clear on this issue, but the details matter. This guide explains how holiday pay accrues during maternity leave and sickness absence, what employees are legally entitled to, and what steps can be taken if holiday pay rights are not respected.

Contents

1. Holiday Pay Rights Under UK Law

2. Statutory vs Contractual Holiday Entitlement

3. Holiday Accrual During Maternity Leave

4. Taking Holiday Before or After Maternity Leave

5. Holiday Accrual During Sickness Absence

6. Long-Term Sickness and Annual Leave

7. Carrying Forward Unused Holiday

8. Common Employer Mistakes

9. What Employees Can Do If Holiday Pay Is Denied

10. Employment Tribunal Claims and Time Limits

11. When to Seek Legal Advice

12. Final Thoughts

Holiday Pay Rights Under UK Law

In the United Kingdom most workers are legally entitled to paid leave under the Working Time Regulations 1998. The Working Time Regulations 1998 give these rights to workers. It does not matter if the worker has a full-time job, a part-time job or a fixed-term contract. Workers, in the United Kingdom get these rights because of the Working Time Regulations 1998.

The key principle is simple:

When people are not at work they still get holiday time. This is the case even when they are on maternity leave or off sick. Employees get this holiday time because it is the law. So employees still accrue holiday entitlement when they are not working, like when they’re, on maternity leave or sickness absence.

This rule is designed to protect workers from losing essential employment rights due to illness or pregnancy.

Statutory vs Contractual Holiday Entitlement

Before looking at maternity leave and sickness absence in detail, it is important to understand the difference between statutory and contractual holiday.

Statutory Holiday Entitlement

Most workers are entitled to:

• 5.6 weeks’ paid holiday per year

• Equivalent to 28 days for full-time employees

This statutory entitlement must continue to accrue during maternity leave and sickness absence.

Contractual Holiday Entitlement

Some employers offer more than the legal minimum. Contractual holiday:

• Depends on the employment contract

• May have different rules during absence

However, many contracts allow contractual holiday to accrue in the same way as statutory leave. Employees should always check their contract carefully.

Holiday Accrual During Maternity Leave

Under UK law, employees on maternity leave continue to build up their statutory holiday entitlement as if they were still at work.

What the Law Says

During maternity leave, an employee continues to benefit from:

• Statutory holiday accrual

• All contractual benefits except wages

This includes:

• Annual leave

• Bank holiday entitlement (if normally included)

Maternity leave is treated as time away from work, not a break in employment.

Taking Holiday Before or After Maternity Leave

Employees cannot take annual leave during maternity leave, but they can take it before or after.

Before Maternity Leave

Employees may choose to:

• Use accrued holiday before maternity leave begins

• Attach holiday to the start of maternity leave

This is common when maternity leave starts close to the end of the holiday year.

After Maternity Leave

Any holiday accrued during maternity leave:

• Must be allowed to be taken after returning to work

• Cannot be lost simply because the holiday year has ended

Employers should allow carry-over where necessary to protect maternity rights.

Holiday Accrual During Sickness Absence

Holiday entitlement also continues to accrue when an employee is off sick, including during long-term sickness absence.

Key Legal Principle

UK law, supported by European case law, confirms that:

• Workers continue to accrue statutory holiday during sickness absence

• Illness does not cancel holiday entitlement

This applies whether the sickness absence lasts:

• A few weeks

• Several months

• Over a year

Long-Term Sickness and Annual Leave

Long-term sickness cases often cause confusion for both employers and employees.

Can Employees Take Holiday While Off Sick?

Yes. Employees can choose to:

• Take annual leave during sickness absence

• Receive holiday pay instead of sick pay for that period

This can be useful where:

• Statutory Sick Pay has ended

• Holiday pay would be higher

However, employers cannot force an employee to take holiday while they are off sick.

Carrying Forward Unused Holiday

Carry-over rules differ depending on the reason holiday was not taken.

Maternity Leave

Employees must be allowed to:

• Carry forward holiday that could not be taken due to maternity leave

• Take it after returning to work

Blocking this would likely be unlawful discrimination.

Sickness Absence

Employees on long-term sick leave:

• Can carry forward up to 4 weeks’ statutory holiday

• Must usually take it within 18 months of the end of the holiday year

This rule protects employees who were genuinely unable to take holiday due to illness.

Common Employer Mistakes

Many disputes arise because employers misunderstand or misapply the law.

Common errors include:

• Refusing to allow holiday accrual during maternity leave

• Requiring employees to use holiday during sick leave

• Failing to allow carry-over of unused holiday

• Miscalculating holiday pay on return to work

• Confusing statutory and contractual entitlements

These mistakes can expose employers to legal claims and compensation.

What Employees Can Do If Holiday Pay Is Denied

If an employer refuses to honour holiday pay rights, employees have several options.

Step 1: Check the Employment Contract

Confirm:

• Holiday entitlement

• Carry-over rules

• Any enhanced contractual benefits

Step 2: Raise the Issue Informally

Many disputes can be resolved by:

• Explaining the legal position

• Providing official guidance references

Step 3: Raise a Formal Grievance

If informal discussions fail:

• Submit a written grievance

• Keep records of all communication

Employment Tribunal Claims and Time Limits

If the issue remains unresolved, employees may be able to bring a claim to an Employment Tribunal.

Possible Claims

• Unlawful deduction from wages

• Breach of contract

• Pregnancy or disability discrimination

Time Limits

Claims usually must be started:

• Within three months minus one day

• From the date of the breach

Early Conciliation through ACAS is mandatory before submitting a tribunal claim.

When to Seek Legal Advice

While some holiday pay disputes are straightforward, legal advice may be helpful where:

• Large amounts of holiday pay are involved

• Employment contracts are complex

• Long-term sickness or disability is involved

• Discrimination issues arise

Employment law solicitors can assess whether a claim is likely to succeed and help negotiate settlements.

Final Thoughts

When you are on maternity leave your holiday pay rights are well looked after by UK law. You still get to build up the holiday time you are allowed by law even when you are not at work. Your employer has to make sure they do not take away these holiday pay rights from you. The same thing applies when you are, off work because you are sick. Your employer must respect your holiday pay rights during this time. Make sure you still get the holiday time you are supposed to get.

Understanding how holiday accrual works—and knowing when holiday can be taken or carried forward—can prevent disputes and protect both employees and employers from costly legal issues. Where problems arise, early action and clear evidence can make all the difference.

Sources & Further Reading

• GOV.UK – Holiday Entitlement
  https://www.gov.uk/holiday-entitlement
  (Official UK guidance on statutory holiday entitlement and accrual rules)

• GOV.UK – Maternity Leave and Pay
  https://www.gov.uk/maternity-pay-leave
  (Official rules on employee rights during maternity leave, including benefits and leave accrual)

• ACAS – Holiday Pay and Sickness Absence
  https://www.acas.org.uk/checking-holiday-entitlement
  (Independent UK guidance on holiday accrual, sickness absence, and employer obligations)