Holiday Pay Accrued & When Should It Be Paid

BonoboJam

I am currently working my notice period and have become concerned about when my employer may pay my statutory holiday entitlement. I was told by a manager that I will receive it in December but my last day will be the end of August 2017. Shouldn't holiday pay be accounted for in the P45? I'd really like to just receive all my holiday pay rather than wait 4 months it.

If I have to write to employer I am worried about how to word the letter requesting that they include my holiday pay in my final pay slip.

Thank you in advance for your help.

McKneff

Ask your payroll dept what is normally done

Undervalued

BonoboJam wrote: »

I am currently working my notice period and have become concerned about when my employer may pay my statutory holiday entitlement. I was told by a manager that I will receive it in December but my last day will be the end of August 2017. Shouldn't holiday pay be accounted for in the P45? I'd really like to just receive all my holiday pay rather than wait 4 months it.

If I have to write to employer I am worried about how to word the letter requesting that they include my holiday pay in my final pay slip.

Thank you in advance for your help.

Yes, it should normally be included with your final pay. The real problem is that apart from asking nicely there is not a great deal you can do if they drag their heels. You could, if necessary, take them to the small claims court if they don't pay within a reasonable time but that would probably take until December anyway!

They can of course instruct you to take some of the holiday during your notice period just by giving you notice of twice the number of days they want you to take.

BonoboJam

Thanks for your replies. I think I will leave it until I am in my final weeks notice to write to them and request that they include my holiday pay in my final payslip and, therefore, P45.

Once I have lodged this request there is no reason for my employer not to include it - I still don't know if there is a employment law in place to protect employees from employers who drag their heels on paying holiday pay at the end of employment. I still do not understand the position that they will pay it four months time? Aren't they obliged by HMRC to include holiday pay in my final payslip as it will be taxed like ordinary income? So how could they issue me with a payment once I have ceased to work for them? These are the things puzzling me.

sangie595

BonoboJam wrote: »

Thanks for your replies. I think I will leave it until I am in my final weeks notice to write to them and request that they include my holiday pay in my final payslip and, therefore, P45.

Once I have lodged this request there is no reason for my employer not to include it - I still don't know if there is a employment law in place to protect employees from employers who drag their heels on paying holiday pay at the end of employment. I still do not understand the position that they will pay it four months time? Aren't they obliged by HMRC to include holiday pay in my final payslip as it will be taxed like ordinary income? So how could they issue me with a payment once I have ceased to work for them? These are the things puzzling me.

No, do not do that. You are leaving open a possibility of them refusing to pay it because you had the opportunity to take it, knew it was owed, and didn't. The right to be paid, even at the end of employment, is not quite absolute. You know you have holiday - ask the manager now whether they wish you to take the leave before the end of your notice, or whether you should expect payment for it. Put it in writing so that it is clear that they have been asked.

General_Grant

Sounds like a manager who doesn't understand holiday entitlements.

If your holiday year runs January to December and you were to work for the year you would have accrued all your holiday during the year.

If you leave part way through (in your case work 8/12 of the year), you would have accrued the same proportion of the holiday entitlement as the proportion of the year you had been employed.

Did he think they would pay for a whole year's entitlement if they waited until December?