Make Work Pay: holiday pay compliance and enforcement

We are seeking views on the proposed approach to holiday pay compliance and enforcement by the Fair Work Agency. This is an important initiative aimed at ensuring fair treatment for workers while providing clear expectations for employers. The consultation offers an opportunity for stakeholders to shape how holiday pay rules are interpreted, applied, and enforced across various sectors.

Context and Rationale
Holiday pay is a fundamental aspect of workers’ rights, reflecting the value of rest and recuperation as well as the need for predictable, fair compensation. In recent years, ambiguities in holiday pay calculation, accrual, and reporting have led to disputes, legal challenges, and inconsistent practices across industries. The proposed approach seeks to address these gaps by articulating a coherent framework for compliance and a transparent, proportionate enforcement strategy.

Key Elements of the Proposed Approach
– Clarity and Consistency: Establishing clear definitions of holiday pay entitlements, including how pay is calculated for different working arrangements (full-time, part-time, seasonal, casual, gig-based) and how this interacts with overtime, statutory entitlements, and any collective agreements.
– Risk-Based Compliance: Prioritising compliance work based on risk indicators such as prevalence of non-compliance in certain sectors, the size of the employer, and the potential impact on workers.
– Education and Guidance: Providing practical resources, tools, and examples to help employers understand their obligations, how to calculate holiday pay correctly, and how to implement compliant payroll processes.
– Responsive Investigations: Outlining the processes for handling complaints and proactive investigations, including the evidentiary standards, timelines, and remedies available to workers if underpayment is identified.
– Proportionate Sanctions: Ensuring that enforcement actions are fair, transparent, and proportionate to the breach, with consideration given to voluntary remediation, back-pay restitution, and potential penalties for repeated or egregious violations.
– Collaboration with Stakeholders: Engaging with unions, employer bodies, professional advisors, and workers’ representatives to gather diverse perspectives and practical insights.

Questions for Consultation
– Clarity: Do the proposed definitions and calculation methods for holiday pay provide sufficient clarity for employers and workers? Where would you see practical challenges or potential unintended consequences?
– Scope: Are there groups or employment arrangements that require more explicit treatment within the proposed framework (e.g., variable-hour contracts, remote workers, or multi-jurisdictional employment)?
– Enforcement: Is the balance between education and enforcement appropriate? Are the proposed remedies and penalties likely to be effective and proportionate?
– Accessibility: Will the guidance, tools, and resources be accessible to a broad range of employers, including small businesses and organisations with limited compliance resources?
– Stakeholder Engagement: What additional channels or mechanisms would you recommend for ongoing consultation and feedback?

Impact on Employers and Workers
A well-defined approach to holiday pay compliance should reduce disputes, promote consistent practices, and provide a fair pathway for redress. Employers stand to benefit from greater certainty in payroll processing, improved workforce morale, and reduced risk of costly legal challenges. Workers will gain stronger protections and clearer recourse where underpayment occurs. The overarching aim is to create a compliant and stable employment environment that supports both business viability and workers’ rights.

Next Steps
The Fair Work Agency invites submissions from a broad range of stakeholders, including employers, employees, industry associations, and legal professionals. Submissions should address the questions outlined above and may offer examples of best practices or potential implementation challenges. Where possible, please provide data or references to support your views.

Timelines and How to Contribute
Details of the consultation timeline, submission formats, and contact points will be published on the Fair Work Agency’s website. We encourage timely participation to ensure a comprehensive and well-informed response to the proposed approach.

Conclusion
Holiday pay compliance is essential to maintaining fair labour standards and trustworthy employer-employee relationships. By seeking diverse input on the proposed enforcement and compliance framework, the Fair Work Agency aims to implement a coherent, effective, and proportionate approach that benefits both workers and employers. We welcome thoughtful, evidence-based contributions that can help shape a robust and practical policy framework.

June 30, 2026 at 12:00PM
让工作有报酬：节假日工资合规与执法
https://www.gov.uk/government/consultations/make-work-pay-holiday-pay-compliance-and-enforcement
我们正在征求意见，关于公平工作机构对节假日工资的合规与执法提出的拟议办法。

阅读更多中文内容： 就拟议的节日工资合规与执法方式征求意见：公平工作机构的视角与影响