Abstract
The Working Time Regulations ("WTR") were introduced in the UK in 1998 to implement the EU Working Time Directive 93/104/EC ("the Directive") and are intended to be a health and safety measure. Under the Regulations, workers are entitled to four weeks paid annual leave. One of the most controversial questions with regard to the right to receive four weeks paid annual leave under the Working Time Regulations is whether and in what precise circumstances, "rolled up" holiday pay arrangements are permissible. This is a system whereby employers pay an additional amount representing holiday pay into the normal salary/wages paid to workers. When the worker then takes annual leave, he does not receive any pay. The worker receives this enhanced hourly rate (typically, this is represented by an 8 to 9% addition to hourly or daily remuneration) to compensate for the fact that he will not be paid holiday pay when annual leave is actually taken.
