The recent Employment tribunal decision in Mr M Ageli v Sabtina Ltd is a stark warning to employers that holiday pay obligations are active, not passive — and that poor record-keeping compounds the risk.
Mr M Ageli v Sabtina Ltd
The employment tribunal awarded £392,000 to a property manager who, over a 25-year period, was repeatedly denied the opportunity to take holiday due to operational pressures. At the point of dismissal, he had built up 827 days of untaken holiday, for which he’d received no compensation.
This illustrates how liabilities can accumulate silently over time when leave is neither taken nor monitored. It also reinforces that the right to paid holiday is fundamental and cannot be waived, regardless of seniority or business needs.
New obligations under ERA 2025 to keep holiday records for 6 years
This case is particularly significant in light of the obligations introduced under the Employment Rights Act 2025, which require employers to retain records of annual leave for a minimum of six years.
These records are no longer just an administrative exercise, they are a key line of defence in demonstrating compliance. Without them, employers may struggle to show that they have given workers a genuine opportunity to take leave or that any “use it or lose it” provisions have been properly communicated.
Employers and HR must ensure staff take holiday
The case underscores a critical point: annual leave is not something that manages itself. There is an active duty to make sure workers can take their holiday — and are genuinely encouraged to do so. Managers – should be trained to monitor leave balances and intervene where necessary.
- Employees – should receive clear reminders about their entitlement and any deadlines for using it.
- HR teams – ensure that holiday systems are robust, regularly reviewed, and well-documented. Simply having a policy in place is not enough. There must be active management, clear communication, and, crucially, accurate record-keeping
Further reading
- Employment Rights Act 2025 – s35 – UK Government
- Employment Rights Act 2025 – Changes from 6 April 2026 – Hunter Law
- Why must employers ensure staff take time off – Hunter Law
- When are holiday pay underpayments unlawful deductions – Hunter Law
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