By PaySlipCheck Editorial
· Reviewed by PaySlipCheck Editorial Standards Team
· 14 June 2026
· 5 min read
Since Bear Scotland Ltd v Fulton (2014) and later Court of Justice cases, regular overtime + regular commission + regular performance-linked bonuses must be included in UK statutory holiday pay for the four EU-derived weeks of the 5.6-week annual entitlement. Employers who paid basic-rate-only holiday pay have systematically underpaid workers, and backdated claims of up to two years remain possible via employment tribunal (subject to the three-month time limit from the latest underpayment). This guide covers what counts as regular pay, the 52-week reference period calculation + how to check whether your holiday pay is being calculated correctly.
Verified against 3 official sources · Last reviewed 14 June 2026
Post-2020: use last 52 weeks worked (excluding zero-pay weeks + statutory leave). Divide total pay by 52 = average weekly pay = one week's holiday.
Where 52 weeks not available (new starter), use however many weeks worked, up to 104 weeks looking back.
Which weeks count for enhanced pay?
Legally required only for 4 EU-derived weeks of the 5.6 statutory weeks. UK-added 1.6 weeks can be paid at basic rate. Contractual holiday above statutory can be paid at basic rate.
Best practice: pay enhanced rate throughout to avoid administrative burden of tracking which type of week.
If your holiday pay is lower than average weekly (excluding one-offs), you may be underpaid.
Claiming backdated holiday pay
Time limit: 3 months from last underpayment
Route: ACAS conciliation → employment tribunal
Cap: 2 years of underpayments (Deduction from Wages (Limitation) Regulations 2014)
In short
Bear Scotland requires regular overtime + commission in 4-week statutory holiday pay. Use 52-week average. Backdated claims within 3 months + capped at 2 years.
Frequently asked questions
What counts as 'regular' overtime?
Overtime worked with regularity + predictability. One-off crisis overtime is voluntary; monthly rota overtime is regular.
Does commission count in holiday pay?
Yes — Lock v British Gas (2014) confirmed. Include commission averaged over reference period.
UK monthly budget planner — A workable UK monthly budget planner: confirm your real net pay, list fixed essentials, list variable essentials, set a discretionary cap, set a savings target. Total must equal net pay. Use 50/30/20 as a starting guide, adapt for your housing situation.
More on related topics
Attachment of earnings — AEO = court order requiring employer to deduct debt from wages. Protected earnings threshold applies.
Auto-enrolment duties — Auto-enrolment = employer duty since 2012. 8% total minimum. Re-enrolment every 3 years.
Bank holidays — No statutory right to bank holiday off. Contract decides. 2026 UK has 8 bank holidays.
All tax figures on this page use the same configuration that powers our
calculators — see our
editorial standards for the review process.
Last reviewed: 14 June 2026.
Next review due 14 December 2026.
Disclaimer: This page provides general information based on published HMRC and gov.scot figures. It is not personal tax or financial advice. For your specific situation, please consult a qualified accountant or contact HMRC directly.