Help re holiday pay upon leaving.

dori2o

Dad has just been finished from his job on capability grounds, they have said this applies from 5 November and then he has 6 weeks notice which he has been paid for.

However we feel the holiday pay he has received is wrong.

They have paid him for 22 days holiday. His holiday period normally runs 02 January to 01 January following year. He gets 20 days holiday and 8 bank holidays so a total of 28 days.

We believe he should have been entitled to 26 days holiday on the following basis.

period from 02/01/10 til 17/12/2010 (5 November plus 6 weeks) is 350 days.

28/365 * 350 = holiday entitlement of 26.8 days.

so taking into account only whole days that is 26.

Can anyone confirm I am correct? also if I am where would I find the relevant statute/law to confirm this.

Caroline73_2

Can he ask them how they worked it out?

I imagine most places are different but I where I work it would be like this

Only based on whole months worked, so Jan-Oct. 20 days AL pro rata for those ten months = 16.66 days. Then you need to take into account that 6 BH have occured this year already so only two left.

covlass

I would have worked it out from 2/1/2010 to 5/11/2010 he would be owed 23.6 days in total rounding up to 24 days including bank holidays based on a 5 day working week

dori2o

I'm not sure if I made it clear, but although they have his last day as 5/11/10 this does not include his notice period (6 weeks) therefore does his holidays not continue to accrue for this notice period?

covlass

If his contract is ending on 5 November then that will be classed as his last day of employment
The employer is giving 6 weeks pay in lieu of notice enabling him to leave on 5 nov instead of making him work another 6 weeks (PILON)
PILON must include normal salary +(any bonus if included in contract)

Equinut

when i was made redundant recently, i accepted pilon and the company included holiday day pay in that. i asked them for a breakdown of how they calculated it - just as well, as they had made an error which i pointed out! they then re-calculated in a correct way.

so in summary i received pay in lieu of untaken holiday days for my pilon period. but you need that breakdown so you can check their maths!

Uncertain

I think this depends on when his employment ends.

Is he leaving on 5 November but then being paid for an additional six weeks as compensation?

or

Is he still employed until 17 December but just not having to turn up to work?

If it is the former then holiday stops accruing on 5 Nov but the six weeks PILON should / may be tax free (this can be complex and depends on the terms of his contract).

In the latter case holiday still accrues until 17 Dec in which case he should get roughly 3 days extra holiday but the six weeks should be taxed as normal.

dori2o

OK my Dad spoke to the employer today and they will look into it.

Here's the breakdown.

Employment terminated on grounds of capability.

Decision letter, dated 1 November advises

'Your employment therefore will cease on 5th November 2010, you entitled to 6 weeks notice to terminate your employment. You will receive a payment in lieu of notice shortly shortly along with any outstanding payments due to you.'

Handwritten note sent with letter advises

6 weeks notice money £460 x 6 = £2760
7 days holiday left 7 x £92 = £644
Total £3404 gross.

Having a look at an old contract of my dads, it seems that the employees of the company accrue their holidays on a month by mnth basis, the contract for 2008 for instance states that employees will accrue 1.5 days per full month employed by the company.

So working on that basis, assuming that he should still accrue holidays during the notice period, then he should have 11/12ths of the full years holiday entitlement. (as the notice period would take himto 17 December).

Any further advice appreciated.

987654

Did he work on the bank holidays?

Assuming he did then he is owed for the days which have occurred already in the year. However he is not owed for Christmas/ Boxing days.

dori2o

987654 wrote: »

Did he work on the bank holidays?

Assuming he did then he is owed for the days which have occurred already in the year. However he is not owed for Christmas/ Boxing days.

He has been paid for the bank holidays that have already passed.

However, with regards to the bank holidays for xmas day, boxing day and NY day, I believe that as they make up part of his 28 days entitlement and he received no more than the statutory 28 days, that they cannot withold these days even though the BH has not yet passed. Assuming that is that these days make up part of the time he is due to be paid.

ginvzt

dori2o wrote: »

Having a look at an old contract of my dads, it seems that the employees of the company accrue their holidays on a month by mnth basis, the contract for 2008 for instance states that employees will accrue 1.5 days per full month employed by the company.

So working on that basis, assuming that he should still accrue holidays during the notice period, then he should have 11/12ths of the full years holiday entitlement. (as the notice period would take himto 17 December).

Any further advice appreciated.

Must be something wrong with this holiday accruing: 1.5 x 12 = 18/ The law is 20 days minimum, and it was stated earlier that company was giving 20 + 8 bank holidays.