Rolled-up holiday pay is when an employer does not pay the employee holiday pay while they are on holiday, but instead makes an additional payment during the weeks that the employee works. This represents the pay due in respect of the holiday periods.

In relation to term time workers, employers will often require that they take their holidays during school holidays, but this should be specifically addressed in the employee's contract of employment.

Employers can either pay term-time workers holiday pay during part of their school holidays or spread their holiday pay across their pay during the year.

In Gee and others v Governing Body of the Haberdashers’ Aske’s Boys’ School, the Employment Tribunal found that paying term time employees equal instalments of holiday pay throughout the year did not amount to rolled-up holiday pay and is acceptable.

Technically rolled-up holiday pay remains unlawful, however, because holiday accrual for term-time workers is governed by term dates, the courts do not view the practice of paying term-time workers in equal instalments as constituting rolled-up holiday pay.