Company refuse to pay for unused annual leave days

Rudess

Hi I need an advise as my company doesn't wish to pay me for my unused annual leave . I have sent them this week an email reminding them of what the final payment this month should consist of, and they refuse paying for the annual leave days.



My company served notice 3 months ago and at end of this week my employment with them comes to an end. In these 3 months I was still officially working, making meetings with clients and representing the company in events.



At no point in the contract or in termination letter, there is a mention for me having to take and use any or all the unused holiday days. In fact the contract says that I'm due to pay in lieu of unused holiday days.



What is your view?

marliepanda

Did you have an allowance which is over statutory holiday?

Were you asked to take holiday at any point and refused?

What is your holiday period, and how many days have you used?

Rudess

marliepanda wrote: »

Did you have an allowance which is over statutory holiday?

Were you asked to take holiday at any point and refused?

What is your holiday period, and how many days have you used?

My annual allowance was 30 days not including public holidays which are in addition to that of course.



I wasn't asked to take holiday at all.



Holiday period from January to December, by end of October I'd have 25 out of 30 (pro-rata), and I used only 5 days this year.

marliepanda

Rudess wrote: »

My annual allowance was 30 days not including public holidays which are in addition to that of course.



I wasn't asked to take holiday at all.



Holiday period from January to December, by end of October I'd have 25 out of 30 (pro-rata), and I used only 5 days this year.

Your allowance is over statutory so I don't believe they have to pay out for contractual holiday.

Have you had 5 holiday days plus the bank/public holidays?

Rudess

marliepanda wrote: »

Your allowance is over statutory so I don't believe they have to pay out for contractual holiday.

Have you had 5 holiday days plus the bank/public holidays?

Yes 5 holiday days plus the bank/public holidays. I'm owed pay in lieu for 20 holiday days.

agrinnall

I'd be pushing to get payment for the 20 days, but you might eventually have to settle for the 15 that are statutory. If they don't pay I believe you can take it to an Employment Tribunal, which is free and therefore perhaps a better option than a small claim (although if you win a small claim you get the filing fee paid too).

Undervalued

The company can almost certainly (unless your contract says otherwise) refuse to pay you for the extra days over and above the statutory 28 per year (which includes bank holidays).

So you need to work out pro rata how many statutory days you were entitled to. For example, if the leave year started on 1 Jan and you left on 30 Septmeber you would be entitled to 9/12 of 28 which is 21 days. If you have taken less than the 21 days (inc the 6 bank holidays) then they must pay you for remaining days.

Rudess

Undervalued wrote: »

The company can almost certainly (unless your contract says otherwise) refuse to pay you for the extra days over and above the statutory 28 per year (which includes bank holidays).

So you need to work out pro rata how many statutory days you were entitled to. For example, if the leave year started on 1 Jan and you left on 30 Septmeber you would be entitled to 9/12 of 28 which is 21 days. If you have taken less than the 21 days (inc the 6 bank holidays) then they must pay you for remaining days.

Thank you for your response. My contract says that I'm entitled for payment in lieu of any unused holiday days.

Undervalued

Rudess wrote: »

Thank you for your response. My contract says that I'm entitled for payment in lieu of any unused holiday days.

Yes, but does it (or the employee handbook etc) say anything about normally being required to use them up unless agree otherwise?

An employer can almost totally dictate when you can and cannot take your holiday so they could easily have insisted you used the days during the notice period if they wished.

If neither apply then, on the face of it, you have a strong case for being paid at least for the statutory days. Additional days are normally subject to certain terms and conditions.

Tammykitty

Rudess wrote: »

Thank you for your response. My contract says that I'm entitled for payment in lieu of any unused holiday days.

Is there any definition given for unused holidays?


I think given your contract says this, and the absence of any definition of any definition stating that it is only statutory holidays, then you have a strong argument for payment of contractual holidays not taken


On the basis of statutory holidays - you are entitled to 23.3days holidays, and you have taken 5 annual leave days and 6? bank holidays


This leave 12.2days.


Calculating on a contractual basis you are entitled to 30 days annual leave, plus 8? bank holidays, so that's 38 days total - pro rata to October is 31.66 days.
You have take 5 annual leave days and 6? bank holidays - so are therefore owed for 20.66 holidays


I think given the contract - you are entitled to the 20 days pay - assuming you haven't turned down leave etc


There is a calculator here to help you calculate the days owed
https://www.gov.uk/calculate-your-holiday-entitlement

Rudess

Undervalued wrote: »

Yes, but does it (or the employee handbook etc) say anything about normally being required to use them up unless agree otherwise?

An employer can almost totally dictate when you can and cannot take your holiday so they could easily have insisted you used the days during the notice period if they wished.

If neither apply then, on the face of it, you have a strong case for being paid at least for the statutory days. Additional days are normally subject to certain terms and conditions.

There is no reference anywhere for me being required to use them.