Holiday entitlement

carolissosmiley_2

Hi

I am taking voluntary redundancy, My last working day as it stands will be 4th Feb.

Our holidays are calculated April to April and work out roughly as 2.5 days per month worked.

Although I will finish 4 Feb I will get a month in Lieu but am lead to believe that I will not have to work that month so my question is should I still get holiday entitlement for the month in lieu??

Meeting with HR on Mon so just wanted a head start for when I meet with them.

Thanks in advance

Carol

anamenottaken

So you will be getting a month's pay in lieu of what? Notice? Have you been there 12 years or more and therefore entitled to 12 weeks' notice?

Payment in lieu of notice should cover your entire loss - so it should include holiday that would have been accrued during that period.

carolissosmiley_2

Yeah a month's pay in lieu of notice. I have been with the company 4.5 years. As I am finishing in Feb, I thought that I would get holiday for the month of Feb and just miss out on March.

As I understand it, they could ask us to work until the end of Feb but it has been agreed that everyone going would go 4 Feb and get paid until the end of the month, hence my question about holiday?

Sorry I'm not expaining it very well lol!! Any advice you can send this way please do so!!

longhauladdict

Hi

If you finish on 4 feb that will be your 'effective termination date'. Your holidays will stop accruing on this date.
All other benefits should be paid for the months notice, but not holidays unfortunately!! Sorry xx

amanda40

MMm not so sure - DH just got made redundant 2 weeks ago - he got his holidays and public holidays paid for his notice period - 13 weeks - Best to double check

longhauladdict

That may have been a goodwill gesture and some companies will pay it, esp larger ones, but legally, holiday entitlements stop on date of termination.
xx

anamenottaken

As I wrote in post #2, the pay in place of notice should compensate for the entire loss - and that does include pay for holiday which would have accrued if full notice had been given.

I am even wondering whether it is really PILON rather than that the OP is not required to work during the final part of the notice period. Will the payment be made at the time the normal February salary would be paid or on 4 February. If the former then it looks like "gardening leave" rather than PILON.

longhauladdict

Hi

sorry to argue the point but legally, holidays are not accrued after the termination date. This has been advised by ACAS, CIPD and our company solicitors as we had the same issue in a recent round of redundancies.
As I said, many companies will pay it as a goodwill, however, should they not, the OP would not legally be entitled to it. I know it seems like you should I tried to argue it too, but def not I'm afraid!!!
The notice should be paid on 4 feb, however most companies choose to pay it with the next salary for ease...however, if it is gardening leave you would accrue the holidays as the effective termination date would be 4 March?

Hope it helps xx

Maxjessdru

Hi

Longhauladdict is correct, any holiday/benefits will not accrue after the termination date (I work in employment law) as the PILON payment is classed as "damages" and not as normal salary/wages.

Ewarwoowar2

Maxjessdru wrote: »

Hi

Longhauladdict is correct, any holiday/benefits will not accrue after the termination date (I work in employment law) as the PILON payment is classed as "damages" and not as normal salary/wages.

That's not entirely true (I'm an employment solictor).

PILON is only compensation when the contract of employment does not allow a PILON to be made. If the contract states that the employer can pay notice as a lump sum, then it's a contractual payment.

Whether a PILON should contain a payment in respect of contractual or statutory holiday entitlement is a gray area which, may, but is unlikely to be covered by a term in the contract.

IMO if the contract does not allow a PILON (or the contract is silent on the issue) then the lump sum should include a payment for the lost holiday. This is because it's a breach of contract and compensation should include all losses flowing from the breach.

As it's a gray area it's essentially up for negotiation between you and your employer. Stick to your guns and request that holiday payment for the addition month should be paid.

senwar

Interested to get a good understanding on this myself.

I leave at the end of January and will receive 3 months Payment in Lieu of notice. Our leave year is January to December. Now I've put a claim in for holidays not taken (or what I won't be taking) in January 2010. But should I be entitled to holidays in Feb, March & April?