30 June 2026
A new consultation has been published by the Department for Business and Trade (DBT), which seeks views on the proposed approach to compliance and enforcement of statutory holiday pay.
The Fair Work Agency (FWA) will be enforcing workers’ rights to statutory holiday pay from 2027 under the Working Time Regulations 1998 and ensuring that employers are fulfilling their legal duties by supporting them with their compliancy obligations, rather than taking a punitive approach (where appropriate). This will be the first time that holiday pay has been enforced by the state.
The Government is seeking to build a framework that is fair, proportionate and effective for employers and employees. For employers, this will involve greater use of compliancy tools, increased engagement and strong enforcement measures including investigations and the issuing of penalties. The FWA will be able to take a whole company approach, rather than focus on individual complaints. This means if concerns are identified regarding Holiday Pay compliancy, the FWA may also examine National Minimum Wage compliancy at the same time. For employees, the aim is to ensure people understand their Holiday Pay rights and are able to access these easily. Therefore, the Government is seeking views on the specific types of support and guidance that would be deemed most useful.
This is an exciting consultation that may have a deep impact on workers and employers. We will keep you updated with any updates, so watch this space!
You can respond to the consultation by 22 September 2026 online, by email at [email protected], or by post.
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