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Previous Years' Holiday Carried Forward When Calculating Redundancy Payment

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Previous Years' Holiday Carried Forward When Calculating Redundancy Payment

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Zesty_MaximusZesty_Maximus Forumite
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Hello, 
Unfortunately it looks like redundancy is on the cards and I need some clarification on something I can't find the answer to online.  
If my company allows unused holiday (above the statuatroy minimum) to be carried forward, is this added to the calculation when being made redundant?  
Eg: 6 Days carried over +12.5 days earned this year so far -2.5 days holiday taken this year = 16 days holiday to be paid.  My employer is arguing that although they previously agreed to me carrying over the 6 days from last year, due to redundancy they are now lost and that I only receive 10 days holiday.  
Is this correct or can my employer, having previously allowed these 6 days holiday to be carried over, now state that won't be added to my holiday pay upon termination due to redundancy?  
Thank you

Replies

  • General_GrantGeneral_Grant Forumite
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    Hello, 
    Unfortunately it looks like redundancy is on the cards and I need some clarification on something I can't find the answer to online.  
    If my company allows unused holiday (above the statuatroy minimum) to be carried forward, is this added to the calculation when being made redundant?  
    Eg: 6 Days carried over +12.5 days earned this year so far -2.5 days holiday taken this year = 16 days holiday to be paid.  My employer is arguing that although they previously agreed to me carrying over the 6 days from last year, due to redundancy they are now lost and that I only receive 10 days holiday.  
    Is this correct or can my employer, having previously allowed these 6 days holiday to be carried over, now state that won't be added to my holiday pay upon termination due to redundancy?  
    Thank you

    First of all I'd argue that those 2.5 days holiday already taken come off the 6 days carried forward.
  • Zesty_MaximusZesty_Maximus Forumite
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    Great suggestion - thank you. 

    Hoping someone can advise me on whether they can refuse to pay any of what was previously agreed could be carried over? 
  • blue.peterblue.peter Forumite
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    The employer's position looks dubious to me. I think that they're trying to pull a fast one on you. All of your holiday - whether carried forward or earned in the present year - is a debt owed to you by your employer under your contract of employment. I'm not aware of exception in the case of redundancy.

    So I'd suggest that you start by looking at what your employment contract says about holiday entitlement and, in particular, loss of it on redundancy.

    Ultimately, though, I fear that if the employer holds its position, you might need to involve an employment solicitor. That. of course, has a cost implication. Is it worth it?
  • edited 23 May at 7:42AM
    blue.peterblue.peter Forumite
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    edited 23 May at 7:42AM
    PS - I've just checked the calculation that I obtained from my former employer's HR department when I was made redundant in 2015. For what it's worth, my carried forward holiday was definitely included in the calculation of what I was paid. Obviously, it doesn't necessarily follow that yours will be, because our employment contracts might say different things. However, I think that my situation is indicative of the norm, if only because I worked for a large company (one with several thousand staff).

    My calculation looked like this:
    210 (full time entitlement) / 12 * 9.5 = 166.5 hours
    3.5 banked days * 7 = 24.5
    166.5 + 24.5 = 191 hours entitlement

    11.5 (days taken) * 7 = 80.5 hours

    191 – 80.5 = 110.5 hours owed

    S / 12 / 21.75 * 5 / 35 = £H (hourly rate of pay)

    H * 110.5 = £P holiday pay owed to you


    Where S = annual salary
    Banked days = holiday carried forward
    9.5 = number of months actually worked in the year (my termination date was in mid-October)
  • Zesty_MaximusZesty_Maximus Forumite
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    Thank you blue.peter. That is really very helpful and much appreciated. 
  • sharpe106sharpe106 Forumite
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    As they agreed to it they still owe you it. I would agree the 2.5 days should have been from last year first. How you are going to get them to agree to pay it I am unsure without getting a solicitor which would probably cost you more then you get.

    If they stick to their position could you not offer to finish a few days earlier, so you still get the time off even if you don’t get any extra money for it.   






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