ChatterBank1 min ago
Holiday Entitlement - unused holiday following resignation
21 Answers
Can anybody help me work out how many days holiday pay I am entitled to following resignation please?
My holiday runs from 1st Jan to 31st Dec. I am currently 'in my garden' until my employment officially ends on 24th October. As of 24th October I have 9 days holiday left.
My contract states upon termination I will be entitled to pay in lieu of any holiday calculated on a pro-rata basis which calculation shall be made on the basis that each day of paid holiday is equivalent to 1/233 of salary.
I think I will be owed for four days.
Can anybody confirm please? (am struggling with the maths).
Many thanks.
My holiday runs from 1st Jan to 31st Dec. I am currently 'in my garden' until my employment officially ends on 24th October. As of 24th October I have 9 days holiday left.
My contract states upon termination I will be entitled to pay in lieu of any holiday calculated on a pro-rata basis which calculation shall be made on the basis that each day of paid holiday is equivalent to 1/233 of salary.
I think I will be owed for four days.
Can anybody confirm please? (am struggling with the maths).
Many thanks.
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I assume you get around 28 days holiday a year. If holidays are based on full weeks then you will have worked 43/52 of a year so will be entitled to 23 days based on the part year.
From your figures you seem to have taken 28-9=19 days.
That means you have 4 left.
But it depends on whether holidays are earned based on worked hours , weeks or full months
From your figures you seem to have taken 28-9=19 days.
That means you have 4 left.
But it depends on whether holidays are earned based on worked hours , weeks or full months
Although the employer may round up, they will not be able to round down as you would be worse off. As of 24.10.12 you will have been employed for 298 days so you would be entitled to (298/366)x28 days or 22.798 days. As you have had nineteen days' leave already, that leaves 3.798 (call it 3.8) days owing to you.
Is that definitely right, the corbyloon, about rounding of holidays? I know employers musn't round down when calculating statutory minimum holidays but I wasn't aware that there were the rules about rounding where a company's holiday provisions exceed the minimum. I recall there was some debate about rounding up/down of consolidated holiday pay for agency staff and I thought that some do round down.
Anyway, this makes me wonder whether the company will also want to factor in statutory holidays in to the calculation. They may say your annual entitlement is 27+8 (or 9 this year maybe) =35 (or 36), then scale it down based on 42/52 weeks and then deduct out how many days you have taken (maybe 19+7=26).
Also, I think some companies, rightly or wrongly, calculate entitlements based on complete months only, so you may not be given an entitlement for October. Again I know they can't do that when calculating the statutory minimum but I don't think that applies here.
Anyway, your employer should know.
Anyway, this makes me wonder whether the company will also want to factor in statutory holidays in to the calculation. They may say your annual entitlement is 27+8 (or 9 this year maybe) =35 (or 36), then scale it down based on 42/52 weeks and then deduct out how many days you have taken (maybe 19+7=26).
Also, I think some companies, rightly or wrongly, calculate entitlements based on complete months only, so you may not be given an entitlement for October. Again I know they can't do that when calculating the statutory minimum but I don't think that applies here.
Anyway, your employer should know.
From the Buisness Link site
"When your workers leave - even if you have dismissed them without notice for gross misconduct - they must receive pay for any holiday they are entitled to in the current leave year but have not taken.
This entitlement is not subject to a minimum period of employment."
and
"Applying the formula above: 5.6 x (7 ÷ 12) – 2.66 = 0.61 weeks' leave to be paid in lieu. (If you need to, you should round this final figure up to prevent an underpayment.)
The same applies even if the contractual entitlent is more than the statutory figure and if someone did only one or two days' work, they would be entitled still to a franction of annual leave entitlement.
"When your workers leave - even if you have dismissed them without notice for gross misconduct - they must receive pay for any holiday they are entitled to in the current leave year but have not taken.
This entitlement is not subject to a minimum period of employment."
and
"Applying the formula above: 5.6 x (7 ÷ 12) – 2.66 = 0.61 weeks' leave to be paid in lieu. (If you need to, you should round this final figure up to prevent an underpayment.)
The same applies even if the contractual entitlent is more than the statutory figure and if someone did only one or two days' work, they would be entitled still to a franction of annual leave entitlement.
Thanks- I've read page 8 (and page 5!) and I'm still not sure whether this is still talking about calculating the statutory minimum or whether it's a 'good practice' statement or legal requirement for employers who offer more than the statutory minimum. I suppose it's a minor point of detail that I may never need to know but I'll keep your document for future reference though
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