Holiday entitlement denied over 25 years

The recent Employment tribunal decision in Mr M Ageli v Sabtina Ltd serves as a stark warning to employers about the financial and legal risks of poor holiday management practices. The Watford Employment Tribunal awarded £392,000 to a property manager who, over a 25-year period, was repeatedly denied the opportunity to take annual leave due to operational pressures. At the point of dismissal, he had accrued 827 days of untaken holiday, for which he received no compensation.

For HR professionals, the case underscores a critical point – annual leave is not a passive entitlement. Employers must take proactive steps to ensure that workers are both able and encouraged to take their holiday. Simply having a policy in place is not enough – there must be active management, clear communication, and, crucially, accurate record-keeping.

Why this case matters

This 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.

The Ageli case 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.

Practical steps for employers

From a practical perspective, HR teams should ensure that holiday systems are robust, regularly reviewed, and well-documented. Managers should be trained to monitor leave balances and intervene where necessary, and employees should receive clear reminders about their entitlement and any deadlines for using it.

Here to Help

Our Employment team at Longmores helps employers manage holiday entitlement and record-keeping obligations and reduce the risk of claims arising from unpaid leave.

If you need advice on reviewing your holiday practices or understanding your responsibilities around annual leave, please contact Miranda Mulligan, Senior Solicitor, in our Employment Law team.

Please note, the contents of this article are provided for information only and must not be relied upon. Legal advice should always be sought in relation to specific circumstances.