Pay for unused holiday after leaving job

[North West Tom]

Hi all,

I left my (full time) job earlier this month and just received my final payslip. Was hoping for some assistance regarding how much unused holiday pay I'm entitled to as it doesn't seem right. Happy to share the numbers:

Holiday year: 1st November - 31st October

My holiday allowance: 30 days

My final day of work: 17th June 2022

Holidays used up to that date: 9


Now the money...

My annual salary: £33,000

Daily that is: £126.92

Accrued holiday pay on final payslip: £761.52

And that works out as 6 days I've been paid for, which seems low to me. Am I missing something or have they made a mistake?

Cheers!

[phumy]

Is it 30 working days or 30 calendar days?

[North West Tom]

phumy said:

Is it 30 working days or 30 calendar days?

Working days

[geeks]

North West Tom said:

Hi all,

I left my (full time) job earlier this month and just received my final payslip. Was hoping for some assistance regarding how much unused holiday pay I'm entitled to as it doesn't seem right. Happy to share the numbers:

Holiday year: 1st November - 31st October

My holiday allowance: 30 days

My final day of work: 17th June 2022

Holidays used up to that date: 9


Now the money...

My annual salary: £33,000

Daily that is: £126.92

Accrued holiday pay on final payslip: £761.52

And that works out as 6 days I've been paid for, which seems low to me. Am I missing something or have they made a mistake?

Cheers!

Does your contract say how you accrue holiday? i.e it looks like you accrue at 2.5 pcm, so 7.5 (months worked in holiday year) x 2.5 (rate of accrual) = 18.75 days. So it does seem a little short. Does your holiday allowance include bank holidays? i.e 22 + 8?

[phumy]

I have a feeling theyve worked it out as calendar days, get back to them and enquire.

[North West Tom]

geeks said:

Does your contract say how you accrue holiday? i.e it looks like you accrue at 2.5 pcm, so 7.5 (months worked in holiday year) x 2.5 (rate of accrual) = 18.75 days. So it does seem a little short. Does your holiday allowance include bank holidays? i.e 22 + 8?

Thanks geeks, yes sorry forgot to include that in OP.

They accrue at 2.08 days per month. And it's 30 days + bank holidays, not including.

30 days includes 5 carried over from the previous year

Edited by North West Tom on Tuesday 28th June 10:46

[North West Tom]

phumy said:

I have a feeling theyve worked it out as calendar days, get back to them and enquire.

Thanks Phumy

[North West Tom]

So after a quick recalculation using the above info, it looks like...

They've ignored the 5 days carried over from last year.

Accrue rate is 2.08 days per month, multiplied by 7.5 = 15.6

15.6 - 9 days holiday I took = 6.6.


Which is a bit st!

[phumy]

North West Tom said:

So after a quick recalculation using the above info, it looks like...

They've ignored the 5 days carried over from last year.

Accrue rate is 2.08 days per month, multiplied by 7.5 = 15.6

15.6 - 9 days holiday I took = 6.6.


Which is a bit st!

Does your contract say that you can carry over holidays, many places do not allow that.

[mfmman]

Or if they do offer carrying over there can be a restriction to make you take them quickly, like in the first three months. Worth checking

[North West Tom]

phumy said:

Does your contract say that you can carry over holidays, many places do not allow that.

It does say that yes, however it also says...

"You may carry up to 5 days of your holiday entitlement forward into the next holiday year. Holiday entitlement not used by the correct date will usually be lost and under no circumstances will payment be made for holiday entitlement that is lost through not being exercised by the correct date."

Not sure what 'correct date' is.

[chrisch77]

I think it is not unusual that a company says 'use it or lose it' when it comes to carryover holiday allowance; you were allowed to carry it over at the company's discretion but it doesn't automatically mean they would agree to pay you for it when leaving the company.

However, as you have used more than the carryover amount in the current holiday year then it will be hard to justify the company holding back the 5 days PIL, as you can say you used up the carryover first before eating into the current year's allowance. I suspect it is just an oversight?

[North West Tom]

chrisch77 said:

I think it is not unusual that a company says 'use it or lose it' when it comes to carryover holiday allowance; you were allowed to carry it over at the company's discretion but it doesn't automatically mean they would agree to pay you for it when leaving the company.

However, as you have used more than the carryover amount in the current holiday year then it will be hard to justify the company holding back the 5 days PIL, as you can say you used up the carryover first before eating into the current year's allowance. I suspect it is just an oversight?

Thanks Chris,

Good point. I think this is the approach I'll take.

[Pinkie15]

Also, how did your ex-emoyer implement the legislated changes in holiday carryover from COVID ? Might have an impact ?

As previously said, whilst not part of your contract, there could be a policy in place that dictates by when you need to use carried over holiday. Quite often it's within the first 3 months of the new holiday year.

Did you use the 5 carried over days within that time period (if there is one) ?

My calculation you'd have earned 15.74 days, 15 days plus (0.74 x your working day in minutes) minutes.

7 x 2.08 = 14.56

17/30 x 2.08 = 1.18

Edited by Pinkie15 on Tuesday 28th June 14:30