Rolled-up holiday pay is not compatible with the Council Directive 93/104/EC, art 7 (nb this directive is no longer in force having been replaced by a new consolidating Working Time Directive 2003/88/EC with effect from 2nd August 2004). However, if the arrangements for rolled-up holiday pay are transparent and comprehensible, this pay can be set off against the worker's entitlement to holiday pay.
For relevant general notes see Working Time Regulations/holidays and Working Time Regulations/problem areas .