A worker who was unable to take annual leave for more than two decades has been awarded nearly £400,000 after a tribunal ruled his employer failed to honour a long-standing agreement on unused holiday.
Mossadek Ageli accrued 827 days of untaken leave over 25 years after repeated requests were refused due to staff shortages. The tribunal found he was entitled to £392,000 in unpaid holiday, alongside more than £100,000 in compensation for unfair dismissal.
The case raises questions about how employers manage annual leave, particularly where operational pressures or informal arrangements prevent staff from taking time off.
Long-running agreement led to significant liability
Mr Ageli worked for Sabtina Ltd, a property management firm, for decades, initially as deputy managing director before becoming commercial manager. He began with an annual entitlement of 30 days, later increased to 45.
The tribunal heard that holiday requests were repeatedly denied in the early years due to limited staffing, leading to an agreement that unused leave would be carried forward and paid at a later date.
Employment Judge George Alliott said the arrangement had been clearly established and relied upon. “I find that it was agreed between [Mr Ageli] and [Sabtina] that, with effect from the start of his employment, any unused holiday would be recorded and any unused entitlement would roll forward each year,” he said.
He added that the expectation of payment at a later stage had also been agreed. “I find that it was agreed between [Mr Ageli] and [Sabtina] that he would be paid for his holiday as and when needed or at the end of his employment.”
Dismissal ruled unfair after dispute over pay
The dispute came to a head after a change in leadership at the company in 2022, when new directors refused to honour the accumulated leave.
Mr Ageli was dismissed for alleged gross misconduct in 2024, but the tribunal found the process to be flawed and lacking basic procedural fairness.
Judge Alliott said the employer had failed to follow a fair process or provide adequate justification. “I find that [Mr Ageli’s] dismissal was clearly procedurally unfair in that he was not notified of the charges against him, was not notified of the evidence against him, was not given an opportunity to represent himself at a disciplinary hearing and was not afforded an appeal”, he said.
The tribunal also found there was no genuine belief that misconduct had taken place, strengthening the case for unfair dismissal.
Case reinforces employer responsibility for leave
Sarah Goldie, an HR consultant at law firm Birketts LLP, told HRreview that the ruling reinforced the legal duty on employers to ensure staff can take annual leave.
“While this decision is highly unusual on its facts, it reinforces several well-established principles that HR functions should not overlook,” she said.
“First and foremost, the right to paid annual leave is a health and safety right, to protect the wellbeing of the worker, and there is an obligation on the employer to ensure workers have a genuine opportunity to take leave. Not doing so can have significant impacts, as this case demonstrates.”
She added that a “key feature of this case was the existence of a long-running informal agreement allowing holiday to be saved and paid later, without proper governance or review, building up historic liabilities”.
Call for stronger governance and record-keeping
Goldie said the case showed that seniority does not remove employer obligations under the law. “Although the individual concerned held a very senior role and had significant autonomy, the tribunal did not accept that their senior status removed the employer’s obligations under the Working Time Regulations,” she said.
“The employer’s knowledge that leave was not being taken, combined with active refusal of holiday requests in earlier years, was highly influential in the outcome.”
She said organisations should take steps to prevent similar situations arising. “Lessons for HR practitioners include ensuring robust annual leave governance, including clear, well-communicated annual leave policies, limiting when and how much annual leave can be carried over and ensuring good record-keeping.”
Goldie also pointed to new legal requirements coming into force. “The new obligations under the Employment Rights Act 2025 to keep adequate records to demonstrate compliance with statutory annual leave and pay that came into force earlier this month makes this more important than ever.”
William Furney is a Managing Editor at Black and White Trading Ltd based in Kingston upon Hull, UK. He is a prolific author and contributor at Workplace Wellbeing Professional, with over 127 published posts covering HR, employee engagement, and workplace wellbeing topics. His writing focuses on contemporary employment issues including pension schemes, employee health, financial struggles affecting workers, and broader workplace trends.
- William Furney
- William Furney
- William Furney
- William Furney
