Payment in lieu of Holiday with salary change?

Giblets

Hi all,
I've recently handed in my notice as I have secured a new role, with recently events going on, I have not taken any annual leave, and so will be owed 7 months worth of annual leave (they calculate it from 1st December). This should be relatively straight forward, however, with the covid issue going on, from Mid April they changed our contracts to reduce our salary by 20% (and asked us to work 4 days a week) for a specific period of three months. As such I am wondering if there is any rule on how much lieu pay should be made, at the full rate, the 80% rate, or full rate for the accrued leave under that salary, then 80% rate for days accrued after mid April?
Many thanks

TBagpuss

I think unless the contract change included different provisions that you would get paid out at the rates applicable for each period - i.e. based on the amount on holiday you accrued on a full time basis from Dec-mid-April, then at the lower rate for the holiday accrued from Mid April onwards. It sounds as though your actual pay rate was the same throughout - you dropped to 80-% hours so you were paid 80% of what you were previously on, so you will simply have accrued slightly less holiday for the period from April on as it will be based on working a 4-day week not a 5 day one.

It will depend on your contract, though - if it says you get x days per year and that wasn't changed when you dropped down, then then you may get lucky! If it says  'x days per year or the pro-ta equivalent' or '5 working weeks per year' or if you just get statutory entitlement with nothing extra, then not.

I'd suggest that you ask HR or whoever does payroll to let you know what you will get and how they are calculating it, then check their figures against your own and your contract. 

Undervalued

They can of course insist that you take the holiday during your notice period rather than paying you for it after you leave. Their choice.

General_Grant

Giblets said:

Hi all,
I've recently handed in my notice as I have secured a new role, with recently events going on, I have not taken any annual leave, and so will be owed 7 months worth of annual leave (they calculate it from 1st December). This should be relatively straight forward, however, with the covid issue going on, from Mid April they changed our contracts to reduce our salary by 20% (and asked us to work 4 days a week) for a specific period of three months. As such I am wondering if there is any rule on how much lieu pay should be made, at the full rate, the 80% rate, or full rate for the accrued leave under that salary, then 80% rate for days accrued after mid April?
Many thanks

So you took none of the 7 bank holiday over Christmas/New Year/Easter/May.

Interesting that they are paying you what the Government would pay if you were furloughed.

You need to check the exact wording of the contract variation.

In normal times you would accrue holiday pro rata to the hours you worked.  Your pay for an hour has not changed - if you work 20% less in a week and are paid 20% less than for a full week.

Giblets

Just a follow up to this, but they paid me the full rate, so didn't go much further.