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Voluntary Redundancy/Unlawful deductions

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Hi,


I work for a major company and have been granted Voluntary Redundancy.


During the initial consultation, I was made aware that the Employee should ensure they take their accrued holidays prior to the effective termination date or else they lose the holidays.


My notice period does allow enough time to take all the holidays but the company has refused to grant ALL of them, getting some though.


The company will not be paying for the untaken 'accrued' holidays so basically it's tough! (I guess) instead they have added an additional 3 months displacement leave salary in addition.


My main problem stems from the fact that back in April last year, I purchased a benefit through salary sacrifice for an additional 5 days holidays. This is a paid benefit which I still pay monthly even though my VR has been accepted and that I am currently working notice.


The terms of the benefit as found through the company's policy is that although the accrued holidays (My understanding is that they mean the statutory holidays) will not be paid if untaken, the benefits through salary sacrifice schemes say that any paid for holidays will be paid back to the employee when they leave.


The company Won't honour this! They say that the displacement leave compensates for all loss of holidays as far as they are concerned!!!!!


I have sought advice from ACAS who agree with what I have said and they have advised me to write a complaint letter. If the company do not pay me back then I can proceed with legal claims for unlawful deductions!


Can anyone help or have been through something similar?
:mad:

Comments

  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    AIUI with VR you make a mutual agreement to terminate so they/you can swap anything for anything.

    They can say 3 months payment compensates untaken holiday, that should be clear in the agreement.

    If not happy with the terms reject them and not take the VR.

    One bit to focus on is the requirement to take the holiday and not being able.

    Your agreement was you could take them so they may be(are?) breaking the agreement if they won't let you take them.

    I think there is an argument that if the salary sacrifice holiday have not been taken then then that should be undone as if it never happened so that could recover 5 days.

    Are the payments being made based on the gross pay or the salary sacrifice pay?
  • kempsey
    kempsey Posts: 18 Forumite
    AIUI with VR you make a mutual agreement to terminate so they/you can swap anything for anything.

    They can say 3 months payment compensates untaken holiday, that should be clear in the agreement.

    If not happy with the terms reject them and not take the VR.

    One bit to focus on is the requirement to take the holiday and not being able.

    Your agreement was you could take them so they may be(are?) breaking the agreement if they won't let you take them.

    I think there is an argument that if the salary sacrifice holiday have not been taken then then that should be undone as if it never happened so that could recover 5 days.

    Are the payments being made based on the gross pay or the salary sacrifice pay?

    Hi,

    The payments are being made from the gross salary.

    With the VR, the contract becomes binding once I signed the option form which didn't have the terms which I discovered. So the contract cannot be 'undone'.
  • Would you be happier with less displacement leave and more holiday pay? It seems like semantics to me - the result will be the same.
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