holiday pay

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A long‑serving employee who accumulated more than 800 days of unused annual leave has been granted more than £400,000 following an employment tribunal.

Mossadek Ageli joined property management firm Sabtina in 1987, initially as deputy managing director before later becoming commercial manager. He was told at the outset that he was entitled to 30 days’ holiday each year.

However, persistent staff shortages meant his requests for time off were repeatedly declined, and he agreed instead to take pay for the leave he could not take.

From 1987 to 1989, he took no holiday at all, because only he and a personal assistant were working full‑time and were required to keep operations running. Between 1988 and 1996, a further 200 days of leave were refused. Ageli emailed senior staff on numerous occasions asking for payment, because he was unable to use the leave he had accrued.

He received payments in lieu of holiday in 2001 and 2004, totalling just over £30,000. After this, it was agreed that he would keep a record of any unused leave, which would be carried forward each year.

Ageli told the tribunal that although he had the authority to approve payments himself, he chose not to do so. He explained: “[Sabtina] does not have a pension scheme for the employees, and both myself and my PA were saving the holidays we could not have for when needed or at retirement.”

He added that despite being the organisation’s sole signatory for more than two decades, he refrained from authorising payments for himself or his PA: “I was relying on receiving these payments.”

In May 2022, Sabtina’s board was replaced, and Ageli’s responsibilities were gradually reduced. He told the tribunal this left him with “no current official save for being an employee”.

In March 2024, he received an email from director Awad informing him that he had been summarily dismissed for gross misconduct. Although the organisation suggested disciplinary concerns had been raised previously, the tribunal found the dismissal came completely out of the blue. He was also told he would not receive payment for 827 days of outstanding holiday. His appeal was rejected.

Ageli brought a claim for unfair dismissal. Employment judge Alliott concluded that the organisation had no genuine belief that he had committed gross misconduct, noting that Sabtina was unable to provide any clear explanation for its decision.

The judge also ruled that the process was “clearly procedurally unfair”, because Ageli had not been informed of the allegations, shown any evidence, or given the chance to respond at a disciplinary hearing or appeal.

Sabtina was ordered to pay £91,489.73 for unfair dismissal and £391,942.77 for unpaid holiday.

Sarah Goldie, HR consultant in the employment team at law firm Birketts, said: “First and foremost, the right to paid annual leave is a health and safety right, to protect the wellbeing of the worker, and there is an obligation on the employer to ensure workers have a genuine opportunity to take leave. Not doing so can have significant impacts, as this case demonstrates.”

She noted that the long‑standing informal arrangement allowing leave to be stored and paid later, without proper oversight, had created a substantial liability.

Goldie added that the tribunal did not accept that Ageli’s seniority removed Sabtina’s responsibilities under the Working Time Regulations. The employer’s awareness that leave was not being taken, combined with earlier refusals of holiday requests, played a significant role in the outcome.

She also highlighted employers’ new duties under the Employment Rights Act to maintain accurate records of holiday accrual and said HR teams should ensure robust annual leave governance, including clear policies, limits on carry‑over, and reliable record‑keeping.

This article is based on a piece written for Personnel Today.