Paying back annual leave when leaving a job

browneyedbazzi

I'm due to leave my current job shortly. Due to a couple of big trips early in the year I've taken more than my pro rata leave entitlement and expect that the extra leave will be deducted from my final pay.

Any ideas how the deduction is likely to be calculated?

Should I expect a deduction equivalent to my hourly rate x standard day hours x extra days (3)?

Tax, NI and pension would have come out of the money when I was paid so the take-home on the three days would be a lot less than the above calculation...is this balanced out in any way when it comes to making the deduction??

I've never been in a position of over-taking leave before and I'm a panner so I'd like an idea of what to expect. (I will ask payroll but their usual response times would mean I get a reply a few weeks after I've left and I thought someone here may be able to shed some light in the interim)

hcb42

i would expect they would just reduce your gross pay by the amount of overpayment

LittleVoice

browneyedbazzi wrote: »

I'm due to leave my current job shortly. Due to a couple of big trips early in the year I've taken more than my pro rata leave entitlement and expect that the extra leave will be deducted from my final pay.

Any ideas how the deduction is likely to be calculated?

Should I expect a deduction equivalent to my hourly rate x standard day hours x extra days (3)?

Tax, NI and pension would have come out of the money when I was paid so the take-home on the three days would be a lot less than the above calculation...is this balanced out in any way when it comes to making the deduction??

I've never been in a position of over-taking leave before and I'm a panner so I'd like an idea of what to expect. (I will ask payroll but their usual response times would mean I get a reply a few weeks after I've left and I thought someone here may be able to shed some light in the interim)

The calculation of the holiday would be done on the gross pay due for the excess holiday. (Your suggestion of a standard day's pay x number of days would be correct - whatever you would have been paid for the time when you took it. Though there would be a difference if you've had a pay rise since!)

As it would be a deduction from your gross pay, you don't have to think about the net pay you received.

In relation to tax and NI - you will pay less because of the deduction from your gross pay. If you are paid weekly you may also find that you do not pay any NI.

How many days do you think you will have taken in excess of your pro rata entitlement? If you are paid weekly and it is more than a week's worth of holiday, they would need to spread this over more than one week's pay.

browneyedbazzi

I've worked it out as 8 days but I have worked a fair bit of overtime recently and have managed to bank 5 days TOIL so that should be subtracted and make it 3 days...I plan to continue working as many extra hours as I can (thank goodness for flexi time!) until my leaving date in hopes of further minimising the pay back.

I'm paid monthly so the weekly pay issues won't affect me.

Savvy_Sue

Make sure that there's agreement to pay you back for any overtime: is it normally paid? Also check that what you think you are owed is the same as what they think you are owed.

And if you are paid overtime, is it usually the same month as you've worked it, or the month after? What I would do in this situation is pay your normal salary, less the leave I KNEW you'd taken but weren't entitled to, and then pay you for any overtime due next month, thus delaying your P45 issue.

browneyedbazzi

Thank you Sue, I do have an agreement re: overtime and TOIL and the days I have earned back so far have already been traded off for the owed Annual Leave. I'm at about 2.5 days owing now and may be able to make that up before I go (fingers crossed!).

Knowing how quick to act HR are at my place of work I expect I'll receive full pay this month (despite leaving before the end of the month) and then an invoice later asking for whatever is owed back...they haven't even acknowledged the emails etc stating that I'm leaving yet and I should have had a leaver's questionnaire within two days of my notice (two weeks ago!). One of the reasons I was curious about how the pay-back would be worked out is so I can set money aside in case they do give me full pay then try to claim it back later.

browneyedbazzi

Bit of an update (and possibly a rant!)...one of our admin (who oversees timekeeping) and I have both been chasing HR trying to get an answer regarding my leave entitlement and other leaving paperwork with no luck. I finally had a response back on monday saying that they were 'waiting for a letter to be signed, then it would be sent out'.

Later that day our admin was sent a message saying that my leave entitlement for the year is 99.9 hours which equates to 13.5 days. The leave year starts in April and my annual entitlement is 31 days or 229.4 hours but they're saying they only count full months to work out leave entitlement....bit mean because my leave date is the 30th, only missing one day in the month, but I still can't see how 99.9 hours was arrived at anyway?

I'm not a mathematician, but as far as I can tell april to october 30th is 6 full calendar months (half of 12) and half of 31 days full entitlement would be 15.5 days or 114.7 hours.

Also, I'm on a 12 month fixed term contract which started 25 October last year. I'm leaving on the 30th so I've worked a little bit longer than the contract. My contract states 31 days annual leave entitlement but when you add up the leave I was given for the part of 2010-11 I worked (13 days) and the leave they're saying I'm entitled to this year (13.5 days) I've actually only had 26.5 days rather than 31 over the 12 months...this really doesn't seem fair/right to me.

To top it off, today I saw my wage slip for tomorrow's pay, and without giving me any notice of deductions to be made they've deducted 6.5 days for overpaid holiday. I knew that I would have to pay some back but thought it would be much less - in the twelve months I have been there I have taken 34 days leave and I have one TOIL day accrued which I was told would be subtracted from what was owing so I expected to pay back 2 days.

I queried the leave entitlement calculations with HR but haven't had any response. I also sent a query to payroll about the calculation for the deductions but they haven't come back to me. I feel a bit like I'm talking to a brick wall!

Any suggestions on what I should do/say or where I stand with this would be really appreciated!!

It's worth noting that after I leave my employer will need my co-operation with regard to a number of ongoing cases I have assisted with (they'll need statements and/or for me to go to court as a witness) so i should have a bit of leverage.

getmore4less

How are bank holidays done? does the 31days include them

if the 26.5 days includes BH then they are under, for a years work statutory is 28 days.


I think you need to remind them that the full month requirement to accrue is not legal for the statutory holidays, holidays accrue from day 1 to finish day.


I think the simple approach might be to point out you worked for a full year and so you need 31 days, You don't care how they do it but you want paying for 31.

The problem is if you took more than 31 days in total and don't have enough TOIL to cover those.

Jarndyce

browneyedbazzi wrote: »

I'm not a mathematician, but as far as I can tell april to october 30th is 6 full calendar months (half of 12) and half of 31 days full entitlement would be 15.5 days or 114.7 hours.

No it isn't. 1 April to 31 October is 7 months.

MrsManda

Is your holiday entitlement 31 days including 8 bank holidays?

Have you counted BHs when calculating that you had 13 days holiday in 2011/11 or was it 13 + 3 bank holidays?

If you ignore bank holidays for the calculation then for 2010/11:
23 days/12months * 7 months worked = 13.5 days.

browneyedbazzi

Jarndyce wrote: »

No it isn't. 1 April to 31 October is 7 months.

You may want to read a post fully and carefully before commenting Jarndyce. As said in my earlier post, I am leaving on 30th of October not 31st so I am not working the full calendar month - therefore they have not included October in calculations for accrued leave. I thought this was explicitly explained especially as I mentioned that I felt it was unfair to disregard the whole month simply because I am missing one day.

To the others to commented, thank you - the 31 days does not include bank holidays, it is just annual leave and bank holidays are accounted for separately (we get 9 rather than 8 due to an extra day at Christmas).

I spoke to my head of service today who has promised to 'sort it out' now (he was off earlier in the week). I'm eagerly awaiting the results of his 'sorting'!