Yes, the provision in the law regarding vacation is mandatory. You get your vacation according to the law even if it is not mentioned in your contract. You get your vacation only after you have worked for 12 months, but you can divide your vacation with the agreement of your employer. For your two years you are entitled to 42 days.
I do not think that the Passport Department pays much heed to such claims. Be careful, if you mention such matters to them then you might end up in more trouble.
You will need to consult the British Embassy or local British Consulate for those answers.
Whether they paid your ESB in March 1991 or not, your entire period of work for that sponsor began in June 1979 and ended in July 2010. This means the first five years from June 1979 at half salary (your last monthly wage plus benefits) and a full salary for every year after that, after June 1984. You calculate any additional days of this work period by dividing your last monthly wage plus benefits by 365.25 and multiplying that by the number of extra days, then adding that sum to your ESB. Obviously, you include March 1991 to July 1993 and you subtract what they paid you in March 1991 from this total. For any unclaimed paid vacation leave, you are entitled to at least 21 days worth of unclaimed paid vacation days for the first five years and at least 30 for the remaining years. (This is the minimum set by the law and doesn’t include any extra days your contract may state.) You are also entitled to a certificate of service mentioning your job and period of service. Unless you are hitting the age of mandatory retirement, you can also request a no-objection certificate that would allow you to immediately work elsewhere in the Kingdom. However, employers are not required to provide this by law. And, of course, if you are returning home your employer must provide the ticket home.