Normally, holiday pay claims tend to be of relatively limited value. Perhaps a few days’ pay or occasionally a week or two. But every now and again, a case comes along which reminds us that the stakes can be a good deal higher. Ageli v Sabtina Ltd is just such a case.
Ageli v Sabtina Ltd
Mr Ageli worked as an estate manager for the same company from 1987 until his employment terminated in 2024. Throughout his employment, because he was essentially one of only two employees responsible for the management of the company’s day-to-day operations, he found it very hard to take his holiday. Requests for leave, when made, were often refused. Eventually, it came to a point where Mr Ageli agreed with the directors that he would essentially be paid in lieu of any holiday he was unable to take. He was required to keep a record of the holiday due to him. Every now and again, he would receive a lump sum payment in lieu of some of the holiday he had accrued to that point. Otherwise, it was accepted that his entitlement to holiday pay would simply roll over from year to year, gradually building up over time. Mr Ageli effectively saw this arrangement as a way of saving for his retirement.
When Mr Ageli’s employers purported to dismiss him for gross misconduct during the course of 2024, it became clear that the company had no intention of paying him for the 827 days’ holiday he had accrued by this point in time. As a result, he brought claims against Sabtina both for unfair dismissal and for the unpaid holiday pay.
The Employment Tribunal’s decision
This case came before Watford Employment Tribunal in February of this year, when Employment Judge Alliott found in Mr Ageli’s favour. He was awarded just over £100,000 in unfair dismissal compensation. More significantly, after taking into account Mr Ageli’s annual salary of just over £123,000, and factoring in the 827 days’ holiday he had accrued, he was awarded the sum of £391,942.77 (less deductions) in unpaid holiday pay.
A warning to others
Admittedly, the facts of this particular case are exceptional. However, this judgment nevertheless reminds us all of the importance of (i) ensuring that staff can readily take their holiday and (ii) carefully managing any arrangements for the carrying forward of untaken leave from one year to the next.
It’s essential to regularly remind your employees of the importance of taking their full holiday entitlement in the year in which it accrues. If you permit the carrying forward of any holiday from one year to the next, make sure your staff are fully aware of any relevant limits on the amount that can be carried forward and any other rules that might result is staff ‘losing’ some of their accrued entitlement if it isn’t taken in time.
Want to read more?
If you need our help in relation to your arrangements for holiday and holiday pay, please get in touch. If you would like to read more about the Ageli case, here is a link to one of a number of related newspaper articles:
James qualified as a solicitor in 2001, having completed his academic studies at the University of Sheffield. Throughout his career, he has worked for a number of prestigious regional law firms, joining stevensdrake as Head of Employment Law in 2012.
As well as pursuing and defending the full range of Employment Tribunal claims, James spends a considerable amount of his time providing advice and support to businesses of various sizes. He advises on a wide variety of HR and employment law issues, including employment contracts, HR processes and procedures, grievances, disciplinary issues, absenteeism, performance management and settlement agreements. He also regularly helps clients with redundancy exercises and internal reorganisations.
James has previously been described as an ‘Associate to Watch’ by Chambers UK, an independent guide to the legal profession. His clients regard him as “thorough”, “easy to work with” and someone who avoids blinding them with legal jargon.
Outside of work, James balances family life with ambitions of swimming, running and cycling a bit faster.
stevensdrake © 2019 All Rights Reserved. Authorised and regulated by the Solicitors Regulation Authority Number 525527. *stevensdrake* and *stevensdrake solicitors* are trading names of stevensdrake limited (registered in England and Wales under number 7159192). A list of the directors is displayed at the above address. stevensdrake are authorised and regulated by the Financial Conduct Authority (FCA) for debt collection and insurance mediation. It is registered the FCA under registration number 702596.
