Get in touch Get in touch
Join Usdaw

View All Member support

All your questions answered

Help and advice

Join Usdaw today

Usdaw welcomes the Government’s commitment to reform the rules on holiday pay enforcement

Retail trade union Usdaw has responded to a Government consultation on holiday pay and compliance by welcoming the commitment to reform the rules and boost compliance to create a system that is fair for all workers.

30 September 2026

0 min read

Joanne Thomas - Usdaw general secretary says: “We welcome the Government’s commitment to reform the rules on holiday pay enforcement to boost compliance, with a view to creating a system that is fair for all workers, especially low-paid and vulnerable workers. Usdaw further welcomes the approach of state enforcement on holiday pay using the newly constituted ‘Fair Work Agency’.

“We accept that the system of calculating holiday pay is complex and that both employers and their workers sometimes have difficulty in understanding holiday entitlements and pay. Any move that supports employers to interpret the rules correctly is welcomed by Usdaw, particularly if it supports our members to better understand their rights and ensure they receive the correct levels of holiday pay.

“We also agree that robust state enforcement is a vital piece of this puzzle that has previously been absent and we hope that the proposed changes will act as a deterrent to employers who would choose to ignore the rules and deny their workers the holiday pay they are entitled to by law. We look forward to the new enforcement rules coming into practice as we feel they will offer better protection for our members than what is already in place.

“Together with other reforms in the Employment Rights Act and the proposed new code of practice on holiday compliance, these changes could make a significant impact on the outcomes for workers who are already in low-paid, precarious work. It is vital that we get this reform right, and do not miss this opportunity to protect vulnerable and low-paid workers.”

Notes for editors:

Usdaw (Union of Shop, Distributive and Allied Workers) is one of the fastest growing unions in the TUC and the UK's fifth biggest with around 370,000 members. Most Usdaw members work in the retail sector, but the union also represents many workers in transport, distribution, food manufacturing, chemical industry and other trades www.usdaw.org.uk

DBIST holiday pay compliance and enforcement consultation

Usdaw’s full response: www.usdaw.org.uk/HolidayPayResponse

For Usdaw press releases visit: www.usdaw.org.uk/news and you can follow us on Bluesky @usdawunion.bsky.social and Twitter/X @UsdawUnion

Summary

Retail trade union Usdaw has responded to a Government consultation on holiday pay and compliance by welcoming the commitment to reform the rules and boost compliance to create a system that is fair for all workers.