Worker Owed Over 800 Days in Pay for Annual Leave Wins £400k

Published : April 22, 2026

In Mr Mohamed Ageli v Sabtina Limited, the employment tribunal awarded more than £400,000 in pay for annual leave following several decades of owed holidays, in addition to unfair dismissal. The Claimant had, in fact, accrued more than 800 days of untaken annual leave. This case demonstrates the serious financial consequences that can arise when employers fail to comply with statutory obligations.

Read on as we examine what happened before outlining the judgment of the tribunal. We then discuss UK holiday pay entitlements and what individuals can do if they believe their rights have been breached.

If you have any concerns regarding your entitlements or believe your rights have been breached, contact Redmans Solicitors now. As specialists in the employment sector, we can provide the answers you’re looking for and discuss your options moving forward. We can also assess your eligibility to bring a claim and guide those eligible through the process.

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Mr Mohamed Ageli v Sabtina Limited: Pay for Annual Leave Case Background

The Parties

The Claimant, Mr Mohamed Ageli, was employed by the Respondent, Sabtina Ltd, in a senior managerial role within the company’s property and estate operations. His employment spanned a significant period, beginning in the late 1980s and continuing until his dismissal in 2024. This long duration of service was central to the scale of the claim, as it allowed a substantial amount of annual leave entitlement to accrue over time.

The Respondent, Sabtina Ltd, was responsible for ensuring compliance with UK employment law. This included the Working Time Regulations 1998, which govern pay for annual leave and workers’ entitlement to paid holiday.

The Facts Surrounding Pay for Annual Leave

The central issue in this case concerned the Claimant’s entitlement to paid annual leave and whether the Respondent had complied with its legal obligations. Over the course of his employment, the Claimant accumulated a very large amount of untaken leave, amounting to more than 800 days.

In the early years of employment, the Claimant’s ability to take leave was restricted due to operational demands within the business. Evidence showed that requests for holiday were often refused on the basis of understaffing or business needs. As a result, the Claimant did not take his full entitlement to annual leave.

Over time, an informal arrangement developed between the Claimant and the Respondent. Under this arrangement, unused leave was effectively allowed to roll over into future years, with the understanding that it would either be taken at a later date or compensated financially. In some instances, the Claimant did receive payments described as being in lieu of holiday, although these payments were inconsistent and did not reflect the full extent of the accrued entitlement.

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This arrangement continued for many years, leading to a substantial accumulation of untaken leave. Importantly, the Respondent did not take adequate steps to ensure that the Claimant exercised his right to take paid leave. Nor did it clearly inform him of the consequences of failing to take leave within a given leave year.

The Claimant’s employment eventually came to an end in 2024. He was dismissed by the Respondent, with allegations of gross misconduct forming part of the justification for the dismissal. The Claimant challenged both the dismissal and the failure to pay for accrued annual leave.

The Employment Tribunal’s Judgment

The tribunal found in favour of the Claimant on multiple grounds. It held that the Claimant had been denied his statutory right to pay for annual leave, and that this entitlement had accumulated over time due to the Respondent’s failure to comply with its obligations. A key aspect of the tribunal’s reasoning was that where an employer does not provide a worker with a genuine opportunity to take paid leave, the entitlement may not lapse at the end of the leave year.

The tribunal determined that the Respondent had failed to meet its obligations in several respects. It had not ensured that the Claimant took his leave, adequately informed him of his entitlement, or warned him that untaken leave might be lost. Furthermore, the informal arrangement allowing leave to roll over contributed to the continued accumulation of entitlement.

Upon termination of employment, the Claimant became entitled to payment for all accrued but untaken leave. The tribunal calculated this entitlement based on the Claimant’s earnings and the number of days accrued, resulting in a sum of approximately £392,000 in respect of holiday pay alone.

In addition, the tribunal found that the Claimant had been unfairly dismissed. The Respondent’s allegations of misconduct were not upheld, and the tribunal concluded that the dismissal was not fair in all the circumstances. This led to further compensation being awarded, bringing the total award to over £400,000.

Analysis of the Tribunal’s Reasoning

The tribunal’s reasoning reflects well-established legal principles concerning holiday entitlement. Paid annual leave is a fundamental right designed to protect workers’ health and wellbeing, and employers have a positive obligation to ensure that workers are able to exercise this right.

A crucial aspect of the judgment was the application of the “carry-over” principle. Where a worker is not given a genuine opportunity to take leave, entitlement will continue to accrue. This prevents employers from benefiting from their own failure to comply with statutory obligations.

In this case, the tribunal found that the Respondent’s practices effectively prevented the Claimant from taking leave. The early refusal of leave requests, combined with the later informal arrangement allowing leave to roll over, meant that the Claimant was never placed in a position where he could reasonably exercise his entitlement.

The tribunal also considered the issue of payments made in lieu of holiday. While some payments had been made, they were insufficient to discharge the Respondent’s obligations. The existence of such payments did not negate the accumulation of entitlement, particularly given the scale of the accrued leave.

The finding of unfair dismissal further reinforced the tribunal’s conclusion that the Respondent had failed to act reasonably. The dismissal was not supported by sufficient evidence, and the Respondent’s conduct fell outside the range of reasonable responses.

Holiday Pay and Entitlement in the UK

Under the Working Time Regulations 1998, workers in the United Kingdom are entitled to a minimum of 5.6 weeks of paid annual leave each year. This entitlement is a fundamental statutory right and applies to most workers, regardless of their role or seniority.

Employers are required not only to provide this entitlement but also to ensure that workers are able to take it. This includes informing workers of their rights, encouraging them to take leave, and maintaining accurate records. Holiday pay must reflect normal remuneration, including regular overtime and other payments where applicable.

In general, leave must be taken within the relevant leave year. However, as demonstrated above, where employers fail to provide a genuine opportunity to take leave, entitlement may carry over. This creates a significant risk for employers, particularly where employment continues over a long period.

What Individuals Can Do If Their Holiday Rights Are Breached

Where a worker believes that their rights relating to holiday pay have been breached, it is important to take appropriate steps. The first step is often to raise the issue with the employer, either informally or through a formal grievance process. This may allow the issue to be resolved without the need for legal action.

If the matter cannot be resolved internally, the worker must engage in Acas early conciliation before bringing a claim to an employment tribunal. This is a mandatory requirement in most cases and is intended to facilitate settlement between the parties.

If conciliation is unsuccessful, the worker may proceed with a tribunal claim. Claims relating to unpaid holiday pay or failure to provide leave must generally be brought within three months of the relevant breach, although ongoing breaches may affect how time limits are applied.

Workers should also keep detailed records of their working hours, leave, and any communications with their employer regarding holiday entitlement. Such evidence can be critical in establishing the extent of any claim.

Pay for Annual Leave: Our Final Thoughts

The above case provides a powerful example of the consequences of failing to comply with statutory obligations relating to pay for annual leave. Furthermore, the tribunal’s award of over £400,000 reflects the cumulative impact of denying a worker their fundamental rights over an extended period.

The decision highlights the importance of ensuring that workers are given a genuine opportunity to take paid leave and that employers actively manage holiday entitlement. Notably, the existence of informal arrangements or partial payments will not absolve employers of their obligations.

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For employers, the case serves as a clear warning of the financial risks associated with non-compliance. For workers, it reinforces the importance of understanding and asserting their rights.

Ultimately, the case underscores a fundamental principle of employment law: the right to paid annual leave must be respected, and failure to do so can lead to substantial and far-reaching consequences.

Get Help with Your Own Claim

If you’ve experienced holiday pay issues, like in the above case, contact Redmans Solicitors. As employment specialists, we can provide the answers you’re looking for and discuss how you can proceed.

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The information on this page is intended for general informational purposes only and does not constitute legal advice.